Register for your state's program, connect it to Gusto payroll deductions, and manage your enrolled employees.
Solution
State auto-IRA programs were created to expand retirement savings access for workers while keeping program administration to a minimum for employers. They are state-sponsored retirement savings plans that require businesses to either offer a qualified retirement plan or facilitate the state’s savings program.
Your state will let you know if your company is required to register for a state’s auto-administered IRA program. If you have not been invited to enroll, no action is required.
If you’re notified to enroll by one of the below state programs, you’re eligible to integrate your company’s auto-IRA with Gusto to automate payroll deductions and streamline your plan administration. Vestwell and the state auto-IRA programs do not charge a fee for this integration or to administer the program. You can view registration requirements, upcoming deadlines, and exemption options directly on your state’s website.
These state programs can integrate with Gusto:
If your company registers for another state’s program not listed above, you can set up manual payroll deductions. Click here for more resources on each state with an auto-IRA program.
Register for your state’s auto-IRA and integrate with Gusto If your company is required to register for a state’s auto-administered IRA program, your state will notify you. If you have not been invited to enroll, no action is required.
Here’s what to do if your company is notified to register for your state’s program.
- Register for your state program’s employer portal. Complete the onboarding steps to activate your company and add your employees to the program.
- Employees are automatically enrolled with the policy’s default deduction after a 30-day waiting period. Employees can opt out at any time, including during the initial 30-day wait period, by signing in to their state’s employee portal.
- Once your onboarding is complete, sign in to your state's employer portal to integrate the benefit with Gusto. Click your state for instructions:
- Important: Until you see the deduction listed in your Gusto Benefits section as “Vestwell State IRA,” which will indicate your integration is complete, you must set up post-tax payroll deductions in Gusto and pay all employee and company contributions directly to the state via the employer portal. It can take 2–5 business days for the "Vestwell State IRA" to be added to your Benefits section in Gusto.
- Once you see the “Vestwell State IRA” deduction set up in your Gusto account, remove the payroll deductions you set up in step 4. Vestwell will automatically add deductions to your Gusto payroll—if you do not remove the deduction you set up, employees will be deducted twice.
- Employee deduction info is sent to Gusto four days before your first integrated payroll. Once you complete the integration connection steps and verify that deduction rates are set, the next time you run payroll, employee Roth IRA contributions are automatically deducted from payroll for eligible employees. Your company is responsible for paying all employee and company contributions directly to the state via the employer portal.
For program-related questions, contact your state’s service team—see the “Still need help?” section below.
For integration-related questions, plan administrators can contact statepayrollintegrations@vestwell.com
Plan administration Manage your plan in the state employer portal
Choose a link below to be taken to your state’s employer and employee portal:
Here’s what you can do in your portal:
- Contributions: Once you run payroll, you can find a record of all contributions processed by pay date and employee on the Contributions tab.
- Employees: Add or remove employees from the plan, view eligibility, and current contribution rates.
- Manage your company’s pay groups and pay schedules.
- Manage bank account information.
New hires
When you hire someone new who’s eligible for the program, add them directly to your state employer portal. The employee will be notified to enroll once they fulfill eligibility requirements, such as a new hire waiting period.
Each time a new employee is auto-enrolled in the program, opts in or out or changes their deduction rate, Gusto is automatically updated, usually within two business days.
Deduction changes
Employees must change their personal contributions directly in their state portal. Changes are automatically sent to Gusto in about 2 business days.
Employee enrollment
New hires and newly eligible employees are automatically enrolled with the policy’s default deduction after a 30-day wait period.
Employees can opt out at any time, including during the initial 30-day wait period.
Employees can opt out or change their deduction rate directly in their state’s Auto-IRA employee portal.
Employee deduction rate changes
To change an employee deduction rate, the employee must do so directly in the state’s employee portal. The change is automatically sent to the state employer portal and then to Gusto, usually within two business days of the change.
Troubleshoot payroll deductions Missing payroll deductions
There are a few reasons why there may not be Roth IRA deductions on a payroll:
- Your integration may not have started yet—check if you have the “Vestwell State IRA” deduction set up in the Benefits section of your Gusto account.
- The employee may not yet be eligible to enroll per your plan's eligibility rules.
- The employee may need to submit their enrollment. Check their enrollment status in the state portal.
- Your company may have run payroll before the enrollment or deduction change was processed. If an employee wants to correct for missed deductions, they can increase their contribution rate in the state employee portal.
- Taxes are applied before deductions. The employee may have had $0 in net pay after taxes.
- The employee may have reached the IRS annual contribution limit.
Need more help? Contact your state's service team:
