As the workforce changes, businesses must adjust to new regulations and standards, particularly for employee benefits like 401(k) plans. The Setting Every Community Up for Retirement Enhancement (SECURE) Act, which took effect on January 1, 2020, aims to increase retirement plan access for Americans, particularly long-term, part-time employees1.Beginning in 2024, companies with a 401(k) plan must allow eligible long-term, part-time employees to contribute to the plan, making tracking part-time employees’ hours critical for compliance.
The Importance of Tracking Part-time Employees for 401(k) Eligibility
Tracking part-time employees’ hours is critical for assessing eligibility for 401(k) plans. According to the SECURE Act, non-union part-time employees who worked between 500 and 999 hours in each of the previous three years must be able to contribute to their employer’s 401(k) plan if they are at least 21 years old at the end of the three-year period1.Employers must begin tracking their part-time employees’ work hours on January 1, 2021, to ensure compliance with the new regulations.
The Challenges of Tracking Part-time Employees’ Hours
Tracking part-time employees’ hours can be difficult, especially for companies with a large workforce or different locations. Manual timesheets can be time-consuming and error-prone, making precise tracking and regulatory compliance challenging.
The Solution: CloudApper AI TimeClock
CloudApper AI TimeClock is a powerful and easy-to-use employee time monitoring tool that streamlines the process of tracking part-time employees’ 401(k) eligibility. CloudApper AI TimeClock, which includes facial recognition, geofencing, and mobile time monitoring, assures accurate and efficient time tracking, making it simple for organizations to meet SECURE Act standards.CloudApper AI TimeClock’s facial recognition technology ensures that the correct employee clocks in and out, lowering the risk of time theft and errors. Geofencing enables organizations to create virtual perimeters around real-world geographic areas, guaranteeing that employees can only clock in or exit from specific locations. This functionality is especially beneficial for businesses with remote job sites or various locations.CloudApper AI TimeClock’s mobile time monitoring software with GPS assigns a “geo-location” timestamp to employee clock-ins and clock-outs, resulting in precise and trustworthy time tracking data. The program also supports several geofence locations with user-level permissions for each, allowing organizations to properly and effectively track the hours of part-time staff.
Conclusion
Tracking part-time employees’ hours for 401(k) eligibility is critical for firms to meet SECURE Act obligations. CloudApper AI TimeClock provides a sophisticated and user-friendly solution for accurate and effective time tracking, allowing organizations to maintain compliance and avoid any penalties. CloudApper AI TimeClock simplifies the time tracking process, allowing businesses to focus on what is actually important: offering the benefits that their employees deserve.
Darren Trumbler is a versatile content writer specializing in B2B technology, marketing strategies, and wellness. With a knack for breaking down complex topics into engaging, easy-to-understand narratives, Darren helps businesses communicate effectively with their audiences.
Over the years, Darren has crafted high-impact content for diverse industries, from tech startups to established enterprises, focusing on thought leadership articles, blog posts, and marketing collateral that drive results. Beyond his professional expertise, he is passionate about wellness and enjoys writing about strategies for achieving balance in work and life.
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