If a PEO handles the payroll of a company, and the company wants a standalone 401(k) plan, will the PEO send payroll data to the standalone 401(k) plan?

That’s a great question, and like all great questions, the answer is “it depends”. Some PEOs support integrations with 401(k) providers while others don’t, and even the ones that do support 401(k) integrations may only work with a handful of 401(k) providers. If you’re evaluating whether to choose a PEO and having an independent 401(k) solution is important to you, make sure that you directly ask the PEOs you’re talking to whether they support an integration with the specific 401(k) provider you want to use – and even more specifically, ask exactly what data fields sync between the two systems. Since you’re asking this question, you’re probably already weighing the pros and cons of using a PEO for your HR management. On one hand, for very small businesses who are planning on staying small they can be a big help in relieving the HR burden on the owner. On the other hand, as your company gets bigger PEOs can become very expensive compared to managing HR internally, and unwinding an existing PEO relationship can be a difficult, expensive, time-consuming process.