Betterment for Business announced Thursday that it will partner with payroll giant ADP in the second half of this year.
According to Betterment, the integration represents ADP’s first-ever API integration, “allowing for a full, secure, and seamless integration between our 401k service and ADP’s payroll service.” Betterment for Business’ 401k service will soon be available in the ADP Marketplace, a cloud-based app for human resources.
“Betterment for Business aims to offer a superior participant experience that leads to better retirement outcomes,” according to the company. “In addition to our commitment to building the best participant experience in the 401(k) industry, we are also committed to continuing to enhance your experience as plan sponsor.”
ADP claims it processes payments for one in six workers in the United States and is the largest provider of HR services in North America.
“Our payroll integration partnership reflects rapid response to customer feedback and reinforcement of our focus to deliver enhanced value to both participants and plan sponsors,” it added in a statement.
Benefits of the partnership include:
- Seamless and efficient way for an ADP payroll system and Betterment for Business to exchange information, freeing business owners and executives to do more value-added work on behalf of employees.
- Easier collection and more accurate census data including eligibility tracking and plan entry dates, simplifying compliance testing season.
- As a workforce grows, improved scale in adding new employees to the platform.
“Our technology is award-winning,” Betterment for Business said. “We have a knack for taking existing processes and applying technology solutions to enhance the customer experience. Payroll integration is no exception. Behind the scenes, this 360-degree integration will allow for payroll information from ADP to be fed directly into Betterment for Business, and vice versa.”
“This partnership reinforces our ability to respond to customer feedback through partnership with a market leader, applying the best technology to improve the plan sponsor experience,”it concluded. “As always, we are committed to helping achieve better financial outcomes for participants and better experience for plan sponsors.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
