A Guide for Plan Sponsors Using Finch for Relius

Your recordkeeper uses Finch to automatically transfer data from your payroll system to Relius for retirement plan processing. This automation streamlines contribution processing, compliance testing, and participant recordkeeping—but it depends entirely on accurate, timely payroll data. Incomplete or incorrect data can cause file import failures or incorrect transfers that delay participant account updates and create compliance risks.

Initial Setup: Getting Your Connection Running

Complete the Secure Connection (5 minutes)

• Your recordkeeper will send you a Finch Connect link to authorize the data connection

• Follow the prompts to securely link your payroll system by providing your credentials

• Unless directed by instructions within Finch Connect, you do not need to contact your payroll provider to set up anything

Payroll Item Mapping

• Finch pulls historical payroll data to identify your payroll items (deductions, contributions, earnings types)

• Your recordkeeper will map these items to the correct plan categories (deferrals, matching contributions, loan repayments, excluded compensation)

• Some recordkeepers may send you a secure link to review and approve these mappings

Typical Timeline: Most connections are fully operational within 1-2 weeks. If you complete Finch Connect immediately and your recordkeeper completes mapping promptly, files can begin flowing within 2 days depending on payroll timing.

Ongoing Maintenance: Keeping Your Data Accurate

Employee Data Updates - Process Within 24-48 Hours

New Hires: Enter complete employee information (name, start date, salary, department) before their first payroll to ensure proper eligibility and contribution tracking.

Rehires: Update the rehire date in the appropriate field when a former employee returns—this is critical for determining eligibility waiting periods and vesting calculations.

Terminations: Update end dates immediately when employees leave to prevent incorrect contribution processing and ensure proper handling of loan balances and distributions.

Salary Changes: Process income adjustments before the affected pay period runs to ensure contribution percentages calculate correctly and maintain compliance testing accuracy.

Status Changes: Update employment status (active/inactive, full-time/part-time) and job classifications promptly as these affect eligibility, vesting calculations, and contribution limits.

Payroll Processing Best Practices

401(k) Deductions: Verify pre-tax and Roth retirement contributions are entered correctly before finalizing payroll. Errors require manual corrections and can delay account updates.

Employer Contributions: Confirm matching contributions and profit-sharing amounts before processing payroll. These amounts directly impact participant account balances and vesting calculations.

Earnings & Hours: Double-check salary, wages, overtime, and total hours worked before running payroll. Compensation data is critical for contribution calculations and annual compliance testing.

Deduction Changes: Update insurance premiums, parking fees, or other pre-tax deductions before payroll runs as these affect calculation of plan compensation and contribution limits.

Payroll Item Changes - Communication is Critical

When Adding New Payroll Items: Notify your recordkeeper immediately when you create new earnings types, deductions, or contribution items in your payroll system. Use clear, descriptive names (e.g., "401k Roth Deferral" rather than "Code 47"). New items require mapping updates before data can flow correctly—unmapped items can cause file import failures.

Data Quality Checklist

Review these items regularly:

• Employee names, addresses, city, state, and zip code are current

• Birth dates and Social Security numbers are accurate for all active employees

• Hire dates and rehire dates (where applicable) are properly recorded

• Termination dates are entered promptly when employees leave

Why Timing Matters

Finch checks for payroll runs daily and generates files using the data in your system on the day that payroll runs. Making employee or payroll updates after payroll has already processed may cause delays in contribution processing, file import failures, compliance testing complications, or need for corrective contributions.

The key principle: Make changes in your payroll system before running payroll, not after. This ensures accurate data flows through on the first pass.

Questions about your connection? Contact your recordkeeper and they'll help ensure your data flows smoothly to support your retirement plan operations.