OnPay, a payroll and HR provider for small- and mid-sized businesses, has launched a 360-degree integration with Betterment at Work, a 401(k) plan provider. This partnership streamlines payroll and retirement benefits administration by automating data flows between systems. OnPay's survey data shows only 41% of small businesses currently offer retirement plans, highlighting an access gap this integration addresses for resource-constrained teams.
Integration Features and Automation
The integration enables automatic syncing of employee and payroll data, reducing manual entry and compliance risks. New hires trigger automatic 401(k) account creation in Betterment at Work, with offboarding handled seamlessly. Updates to employee records reflect in real time across platforms.
Payroll contributions—including employee deferrals, employer matches, and loan repayments—sync each pay period. This supports accurate record-keeping and fiduciary compliance. Employees gain access to Betterment's investing tools, financial guidance, and support resources.
Patrick Beahm, VP of Product at OnPay, noted that the integration minimizes administrative time, allowing owners to focus on operations. Thomas Moore, Sr. Director of B2B Partnerships at Betterment, emphasized combining scalable 401(k) solutions with OnPay's payroll technology to aid hiring, retention, and employee financial wellness.
Implications for Small Business Operations
Small businesses often face barriers to offering retirement plans due to administrative complexity. This unified setup lowers those hurdles, potentially improving talent attraction in competitive labor markets. By embedding 401(k) management within payroll workflows, it enhances operational efficiency and data accuracy.
Betterment at Work leverages technology managing over $65 billion in assets, providing scalable plans that meet fiduciary standards. OnPay, recognized as a 2025 PCMag Editors’ Choice, offers transparent pricing and automated tax filings. The partnership expands benefits options without requiring separate systems.
For financial infrastructure, such integrations reinforce trust through reliable data handling and compliance tools. They enable small employers to build resilient benefits structures amid rising expectations for workplace perks.
Compliance and Risk Considerations
Automated syncing helps maintain compliance with retirement plan regulations, though employers remain responsible for fiduciary duties. Real-time updates reduce errors in contribution reporting, a common pain point. Businesses should review plan setups to align with their operating models and employee needs.
The integration is accessible via OnPay's app directory: https://onpay.com/app-directory/category/401k/betterment-at-work/. Note that OnPay is a paid non-client of Betterment.
Key Takeaways
- Automatic employee sync creates 401(k) accounts for new hires and handles offboarding in real time.
- Payroll data for deferrals, matches, and loans flows each pay period, minimizing manual work.
- Only 41% of small businesses offer retirement plans, per OnPay survey data.
- Integration supports compliance and fiduciary requirements via automated, accurate data handling.
- Employees access modern investing tools and guidance from Betterment at Work.
FinanceInyte's Take
This OnPay-Betterment integration simplifies 401(k) administration for small businesses, addressing a key benefits gap through automation. Decision-makers should monitor employee uptake and compliance metrics post-implementation, while watching for evolving regulatory standards in workplace retirement plans.
Source: Businesswire
