Integration Will Drive Efficiency by
Enabling Employers to Automate Contributions, Reduce Risk, and
Deliver More Competitive Benefits
Fidelity Investments®, the country’s largest1 401(k)
provider, and Paylocity, a leading provider of cloud-based HR and
payroll software solutions, announced today that seamless access to
payroll capabilities is now available with the Fidelity Advantage
401(k)SM pooled employer plan (PEP). This enhancement will reduce
the administrative burden on small- and mid-sized businesses
offering retirement plans for their employees and help workers
start saving towards their retirement goals.
Retirement benefits have traditionally been cost-prohibitive to
smaller businesses, and workers are seeking financial security more
than ever. According to a report2 by the Georgetown University
Center for Retirement Initiatives, there are roughly 57 million
private sector workers (46%) who do not have access to a retirement
plan through their employers. This access gap more heavily impacts
smaller businesses and disproportionately affects lower-income
workers, younger workers, underrepresented communities, and women.
At the same time, retirement planning is top-of-mind for workers,
according to the Fidelity Investments 2021 State of Retirement
Planning Study, which found that seven out of 10 workers in the
U.S. are making changes to improve their retirement
preparedness.
To help make quality benefits accessible to more companies,
Fidelity created the Fidelity Advantage 401(k) plan, a pooled
employer plan that allows multiple unrelated small- and mid-sized
businesses to participate in a single 401(k) plan. Employers are
recognizing that pooled employer plans such as Fidelity’s can be a
cost-effective and efficient way to offer 401(k) benefits to their
current employees, and to use as part of a broader benefits
offering attract new workers.
Fidelity is teaming up with Paylocity to help businesses further
streamline two important aspects of their employee benefits
administration. The first is automated, two-way sharing of plan
information between Fidelity and Paylocity, known in the industry
as 360° integration. This allows for automatic contribution
processing, which means employees can change contributions within
Paylocity and the data seamlessly flows into Fidelity Advantage
401(k). In addition, the solution eliminates the need to manually
upload information each pay period, reducing the risk of errors and
scrutiny over prompt salary deferral deposits.
“By offering Fidelity Advantage 401(k) clients an integrated
payroll experience with Paylocity, Fidelity is helping small- and
mid-sized businesses reduce costs and improve the efficiency of
their employee benefits platform, while making it easier to help
close the retirement gap and offer a 401(k) to their employees for
the first time, including employees from traditionally
underrepresented communities,” said Chris Houlihan, Head of
Outsourcing Provider Partnerships at Fidelity Investments.
“Providing payroll integration is the first step in a broader
strategy for Fidelity’s Advantage 401(k) platform, and we will
continue to seek opportunities to enhance our retirement products
to meet the evolving needs of business owners.”
Vertx Partners3, a business consulting firm based in Morgantown,
West Virginia, and an early adopter of the Paylocity and Fidelity
integration, has welcomed this opportunity to enhance its benefits
offering for its employees. “We’re excited to be able to offer a
401(k) to our employees,” said Sean Frisbee, President of Vertx
Partners. “With Fidelity and Paylocity, we didn’t have to become
401(k) experts. They simplified the options and the process,
allowing us to spend more time doing what we do best -- connecting
small businesses and helping them find contract opportunities.”
Fidelity’s strategy aligns with Paylocity’s commitment to help
businesses save time and resources and improve business outcomes by
focusing on their employees. “This latest milestone in our
collaboration with Fidelity to help companies deliver better
benefits comes at a perfect time,” said Chris Westfall, Vice
President, Head of Channels &Alliances for Paylocity. “Offering
simple ways to help employees plan for retirement has become even
more vital to attract and retain talent.”
For more information on Fidelity Advantage 401(k) please visit
https://www.fidelityworkplace.com/s/401ksmallbusiness.
About Fidelity
Investments
Fidelity’s mission is to inspire better futures and deliver
better outcomes for the customers and businesses we serve. With
assets under administration of $11.1 trillion, including
discretionary assets of $4.2 trillion as of September 30, 2021, we
focus on meeting the unique needs of a diverse set of customers:
helping more than 38 million people invest their own life savings,
22,000 businesses manage employee benefit programs, as well as
providing more than 13,500 wealth management firms and institutions
with investment and technology solutions to drive growth. Privately
held for 75 years, Fidelity employs more than 52,000 associates who
are focused on the long-term success of our customers. For more
information about Fidelity Investments, visit
https://www.fidelity.com/about-fidelity/our-company
About Paylocity
Paylocity (NASDAQ: PCTY) is a leading provider of cloud-based HR
and payroll software solutions headquartered in Schaumburg, IL.
Founded in 1997 and publicly traded since 2014, Paylocity offers an
intuitive, easy-to-use product suite that helps businesses tackle
today's challenges while moving them toward the promise of
tomorrow. Known for its unique culture and consistently recognized
as one of the best places to work, Paylocity accompanies its
clients on the journey to create great workplaces and help people
achieve their best through automation, data-driven insights, and
engagement. For more information, visit www.paylocity.com.
Fidelity Brokerage Services LLC, Member NYSE,
SIPC 900 Salem Street, Smithfield, RI 02917
Fidelity Distributors Company LLC 500 Salem
Street, Smithfield, RI 02917
National Financial Services LLC, Member NYSE,
SIPC 245 Summer Street, Boston, MA 02110
1004306.1.0
© 2021 FMR LLC. All rights reserved.
1 By total 401(k) assets according to Plan Sponsor magazine 2021
Record Keeping Survey. 2 Georgetown University, McCourt School of
Public Policy, Center for Retirement Initiatives, “What Are the
Potential Benefits of Universal Access to Retirement Savings?”,
December 2020 3 Used with permission of Vertx Partners.
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version on businesswire.com: https://www.businesswire.com/news/home/20211116005363/en/
Mike Shamrell (617) 563-1996 michael.shamrell@fmr.com
Brad Buyce (404) 895-3998 bbuyce@paylocity.com
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