Payroll Funding FAQs

Withheld Contributions

Why are contributions being withheld from payroll but not funded at Betterment?

This usually means the contributions haven't reached Betterment or are waiting on an action from you. Check the following:

• Payroll integration: Confirm with your payroll provider that the employee is included on the data feed to Betterment.
• Manual upload: Make sure the employee's contribution is included on your payroll file.
• Pending approval: Go to Payroll and look for a payroll marked Action required. Unless automatic approval is turned on, payrolls aren't processed until you approve them.
• Bank account: Make sure a funding bank account is selected. Funds can't be pulled until one is chosen.
• Employee data errors: Check Payroll > Unresolved 401(k) transactions and Employees > Needs review. Contributions with missing or mismatched employee information are held until the issue is resolved.

How long does it take for contributions to reach employee accounts?

Once a payroll is approved, funds are pulled from your bank account on the payroll effective date and typically invested within 3 business days.

What happens if held contributions aren't resolved?

Contributions that remain unresolved for 70 days are moved to your plan's suspense account. You'll then need to correct the employee's account separately, so it's best to resolve these as soon as possible.

My bank rejected the payroll debit. What should I do?

Ask your bank to allow Betterment's ACH Originator ID, 6743132639. This is most common on a plan's first payroll. Once your bank confirms, contact your Betterment at Work support contact to resubmit.

How do I send contributions that were missed?

1. Download a new payroll template from Payroll > Upload Payroll.
2. Enter only the missed contributions, using the original pay date.
3. Upload the file, then let your Betterment at Work support contact know so we can match it to the right payroll.

Money withheld from an employee's pay must be deposited to the plan promptly. Late deposits may require lost earnings and must be reported on your Form 5500. Talk with your ERISA or tax advisor about correction options.

Payroll Cancellations

When can I cancel a payroll?

You can cancel a payroll at two points:

• Before it's approved
• After it's approved, but before it's finalized

How do I cancel a payroll?

1. Go to Payroll on the Plan Sponsor Dashboard.
2. Select the payroll effective date you want to cancel.
3. Select Cancel this payroll at the top of the page.
4. Select Cancel payroll to confirm. If you change your mind, select Never mind.

After canceling, upload a corrected payroll file with the same pay date. If you use an integration, a canceled payroll may not re-sync automatically, so plan to upload it manually.

What if I don't see the option to cancel?

The payroll has likely been finalized and can no longer be canceled. If you underfunded, upload a new payroll file with just the difference. If you overfunded or need another change, see When does Betterment need to correct a payroll for me? below.

When does Betterment need to correct a payroll for me?

Once a payroll has been finalized, some corrections need to be processed by Betterment. These include:

• Overfunded contributions that need to be reversed
• Contributions sent for the wrong employee or in the wrong amount
• Contributions sent to the wrong source, such as pre-tax instead of Roth
• A full payroll that needs to be reversed
• Lost earnings on late contributions

If you underfunded a payroll, you don't need us to make a correction. Upload a new payroll file with just the difference.

Payroll Corrections

How do I request a payroll correction?

1. Email plansupport@betterment.com with your plan name, a short description of what happened, the payroll effective dates affected, and the number of employees affected. Let us know if you have a deadline. Please don't email Social Security Numbers or payroll registers. If we need them, we'll give you a secure way to share them.
2. Share the correction details for each affected employee: name, payroll effective date, the amount sent, the correct amount, and the source (pre-tax, Roth, or employer match). Let us know whether the contribution was withheld from the employee's pay.
3. Review and sign the Statement of Work we send you through DocuSign. It must be signed by an active plan administrator on your plan. If someone else signs, we'll need to send it again for the correct signature.

How long does a payroll correction take?

Corrections are typically completed within 10–12 business days after we receive your signed Statement of Work.

Where do reversed funds go?

Unless otherwise specified in your Statement of Work, reversed funds are sent to your company's plan suspense account. Betterment does not return funds directly to employees. If an employee needs a refund, your company issues it through payroll or by check.

Can Betterment calculate lost earnings on late contributions?

Yes. Let us know when you request the correction. Lost earnings calculations carry a fee, which we'll share with you. Betterment doesn't provide tax or legal advice, so talk with your ERISA or tax advisor about any excise tax or Form 5500 reporting.

Payroll Provider Update

How do I update, pause, or disconnect my payroll integration?

Email our Payroll Support team at payrollsupport@betterment.com. We'll respond within 24 hours with next steps based on your request.

What do I need to share if I'm switching payroll providers?

Please come ready with the following information:

• Your new payroll provider
• Your first pay date with the new provider
• Your last pay date with your current provider

What should I do while switching payroll providers?

• Keep your current integration connected until your final payroll with the old provider has been processed. A plan can have only one active integration.
• Upload payroll manually for any pay dates between providers, until we confirm the new connection is live.
• Set up 401(k) deductions at your new provider. You can download the Current Deferral Rates report from the dashboard to enter them. Contributions won't be withheld if rates aren't set up.
• Resolve any items under Unresolved 401(k) transactions before you switch. These are harder to fix afterward.

What happens if my integration disconnects?

You'll receive an email asking you to reconnect your payroll integration. Until you reconnect, we can't retrieve new payrolls, so reconnect or upload payroll manually to keep contributions on time.