Why Does BPAS Require So Much Data Every Pay Period?

“Every pay period when I send my company’s contribution data to BPAS, you require a full census file, including all employees even if they don’t want to utilize the plan. Why is that? If they don’t want to invest for their future, you don’t need their information all year long! Oh, and you also want every employee’s address, year to date hours and salary EVERY time I send a file. My system only shows me current period hours and salary…can’t I just send you a special file at the end of the year?”

We frequently hear similar complaints from new clients, especially those coming from another recordkeeper that didn’t request anything more than the contributions from each pay period. So, why does BPAS need all this up to date information, for all employees, every pay period?

How About a Quick Example?

Over the years I’ve run a few small businesses outside of my career at BPAS. As you can imagine, there were many times throughout the year when it just seemed easier to throw all those sales and expense receipts in a folder. I didn’t have that much time to keep nice, up-to-date record books. Well, guess what?  Come tax season, it was a nightmare sorting through that mess so I could file my income taxes. I finally realized it only takes a few extra minutes throughout the year to keep my records current. Now, come that dreaded time of the year, tax season, I simply print a quick report and my small business records are ready to go!

Our Goals to Benefit You

Well, the same applies to your Company’s retirement plan. Here’s how all this information helps BPAS achieve our goal of providing stellar service to our clients:

• BPAS sends out many participant requested documents, as well as educational and informational documents advising participants how to retire with dignity.  Having up-to-date employee addresses ensures that participants receive their statements and other mailings in a timely manner.
• For many reasons, contributions can be processed in error, such as the participant not yet being eligible to contribute; they are on a hardship suspension or, have already met the yearly contribution limit. If these issues occur, at the end of the year these errors will need to be corrected and due to market value or other factors, the sponsor could incur a cost associated with any losses.  Therefore, having up-to-date eligibility and vesting records can save the sponsor work and the potential cost of correcting contributions made in error at year end.
• Having up-to-date employee information allows for more efficient and accurate processing when employees need to take withdrawals or loans from their accounts, enabling BPAS to process the correct amounts without the need to contact the sponsor for information.
• Come year end, BPAS already has the necessary information for plan compliance testing to provide the sponsor with their prepared form 5500 for tax filing. There is no need to bother the sponsor for additional information at a busy time of the year.

These are just a few of the benefits of providing all the required census information to BPAS throughout the year. Please note, if you’re struggling to prepare your periodic payroll for BPAS, the Census Department Staff is available and ready to assist you. We can walk you through our systems and work with your IT Staff or your payroll company to build an import file. We welcome the opportunity to help.