• Most payroll/401(k) integrations sound seamless—but they aren’t.
• Providers push “preferred” platforms that quietly lock you in.
• Rep telling you “you’re all set” probably isn’t licensed—and definitely isn’t accountable.
• Bonus runs, off-cycle payrolls, and loans? Still your problem when they fail.
• You don’t need to start over—you just need someone to make the parts you already have work better.

You were told it would be easy. Just connect your 401(k) provider to your payroll system and let it run itself.  Which works great.

Until it doesn’t.

Files don’t sync. Deferrals are off. The TPA says, “Talk to payroll.” Payroll says, “That’s on your advisor.” The advisor hasn’t logged into your plan since 2021.

Here’s the Real Problem

Removing human review of census data is one of the biggest compliance blind spots in so-called integrated systems. We’ve seen payroll platforms completely miss obvious red flags—like a dozen employees with the same last name. Are they family? Are they owners? Are they HCEs? Payroll doesn’t ask—because they don’t know they’re supposed to. They assume you or your advisor are handling it. This stuff gets missed all the time—and it matters when you’re doing testing or eligibility checks.

Most “integrated” 401(k) systems are built around vague promises and low expectations:

And here’s something nobody talks about: the person telling you their system is a “perfect fit” probably isn’t even licensed to give that advice. Most payroll and tech-first platforms don’t require their reps to hold any securities licenses—no Series 65, no fiduciary duty. They’re not advisors, and they’re not accountable if it goes sideways.

If I said, as a licensed fiduciary advisor, “all fiduciary risk is removed,” it would be a huge compliance problem. But when a Paychex or payroll platform rep says it? They just say “oops” and address it internally. No regulatory consequence. No personal liability. No enforcement mechanism. They’re not advisors, and they’re not accountable if it goes sideways.

Ironically, many of the so-called legacy or “dinosaur” platforms do require an advisor to be involved. Not always for the noblest reasons, but at least they recognize that when you’re placing millions of dollars of other people’s retirement money, someone with a license should probably be in the room.

• Payroll vendors like Gusto and Rippling push preferred providers, often locking you into a limited path
• Recordkeepers offer one-way feeds that require manual cleanup when they break
• Nobody tells you who owns the outcome

That leaves you exposed to:

• Late deposits
• Failed match calculations
• Compliance testing issues
• And no one accountable when things go wrong

To make things murkier:

• Sometimes the payroll provider charges a fee for integration.
• Sometimes the recordkeeper does.
• And sometimes, it’s “free”—but you end up paying for it in errors and lost time.

Here’s the truth: Payroll providers do the best job of capturing 401(k) business—not because they offer the best plans, but because once they own both payroll and retirement, it becomes sticky.

Trap might be the better word.

Letting the same vendor control both payroll and the 401(k) is often like asking your barber when you need a haircut—a classic Warren Buffett line. If you ask your payroll provider, “Can you just handle the 401(k) too?” they have zero incentive to tell you it’s a bad fit. It’s like asking the fox to manage your henhouse. Or asking your cable company to manage your internet reviews.** It’s convenient—until it isn’t. Once they’re inside both systems, it’s hard to untangle without blowing things up.

And here’s the counterpoint:

For small companies—or anyone looking for simplicity—sometimes logging in and uploading a file every two weeks is totally fine. That five-minute task might save you thousands in bundled fees or bad service.

It’s not about automation for automation’s sake. It’s about control and clarity.

Oh—and let’s talk about the marketing fluff behind “integration.”

There’s a big difference between 180° integration (data moves one way—you still log in and submit the deposit) and 360° integration (full automation). Even the ones marketed as 360° often fall short—most are closer to 180° than people realize. And the second anything goes off script—like a bonus, commission, or off-cycle payroll run—it breaks.

The number one failure point, even with “full” integration? Money goes to the wrong person or the wrong source. Sometimes both.

Don’t even get us started on loans.

This is exactly the leverage payroll companies use: they dangle convenience, but the moment something breaks, it’s your problem—not theirs. If they ever got the service side right, they’d be dangerous. But the reality? We’ve seen far more plans transition away from ADP and Paychex than the other way around.

FAQ: Quick Answers for Frustrated Humans

What’s the difference between 180° and 360° integration?
180° means data flows one way—you still log in to submit deposits manually. 360° means full automation. Most “integrated” setups are 180°, but they won’t tell you that.

Do I need to switch payroll providers to improve integration?
Not always. We often help clients keep what they have—just with smarter oversight and better connections.

What breaks most often with 401(k) integration?
Special payroll runs (bonuses, terminations), missed eligibility, wrong contribution sources, and loan handling are frequent failure points.

Why does it feel like nobody takes responsibility?
Because they don’t. Payroll blames the recordkeeper. The recordkeeper blames the advisor. And the advisor might not even know what’s going on.

Isn’t this what my TPA or advisor is supposed to manage?
Yes. But if you’re with a bundled provider—or nobody’s talking to each other—chances are it’s falling through the cracks.

Which Providers Actually Work?

There’s no magic stack—but here’s what we’ve seen work (and not work) in the real world:

Want a deeper dive into the platforms themselves?
Check out our full review of “tech-first” 401(k) providers →

Do You Need to Switch Providers?

Not necessarily. Most business owners assume integration means ripping out payroll or ditching their current 401(k) provider.

In reality:

• You can often keep what you have and improve the process
• We’ll show you what’s salvageable and what’s not
• You’ll finally know where your risk lives and what’s worth fixing

What This Looks Like

Step 1: We review your current setup—payroll, recordkeeping, TPA (if any), and plan design

Step 2: We identify what’s working, what’s not, and what’s overcomplicated

Step 3: We give you a plain-English integration map—including risks, recommendations, and what you can fix yourself vs. offload to us

You don’t need a new provider. You need a smarter connection between the ones you already have.

Not Sure If You Need This?

• Is payroll sending 401(k) files automatically? Do you know who checks them?
• Have you ever failed testing or had to rush a deposit fix?
• Is your advisor managing the plan—or just getting paid?

If any of that hits home, it’s worth a second opinion.

email me at jason@missionretirementplans.com for a review, or give me a call at 📞 619-942-4510

Areas We Serve

We work with businesses across California—including San Diego, Los Angeles, Orange County, Sacramento, and the Bay Area. Whether you’re dealing with payroll headaches in Fresno or 401(k) integration issues in San Jose, we’ve seen it—and we can help.

Disclosures: We’re an independent advisory firm that works with unbundled, semi-bundled, and integrated 401(k) platforms. We don’t sell software—we make your systems work together so your retirement plan doesn’t become a liability.

Here’s what most business owners don’t realize until something goes sideways:

When a mistake happens—wrong match setup, missing notices, late filings—your payroll provider is going to put up their hands and say:

“That’s not on us. You’re the plan sponsor.”

They’re not entirely wrong. But they also didn’t explain the rules, didn’t check the data, and didn’t tell you where the landmines were.

That’s where I come in: to spot problems before they happen, clean up the ones already in motion, and give you a plan that doesn’t rely on luck or autopilot.