Your employees who earn W-2 income should be able to make their first contributions in the first payroll run after your plan’s start date, and should see any applicable 401(k) deductions withheld from that first paycheck. This milestone marks your first payday with an active Guideline 401(k). It may take up to 5-7 days after your scheduled pay date for employee and employer contributions to be collected from your company bank account via ACH and allocated to participants’ investment accounts.
Keep in mind that in order for your plan to start on time, we need all tasks on your Guideline administrator dashboard completed. Please also remember that you should wait a full business day after the plan’s start date to run your first payroll to ensure that contributions are properly synced to your payroll system.