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Special Payroll and 401(k) Deductions

As a Vestwell 401(k) customer, you may be tempted to skip a 401(k) deduction or contribution when running a special payroll. But, be aware that your Vestwell plan dictates that you must apply an employee’s 401(k) election to any payroll compensation reported on the W-2. This includes bonuses, net-to-gross payrolls, employee goodwill (e.g., gift cards), or any payroll that’s out of the ordinary.

Patriot will not prevent you from skipping a Vestwell deduction or contribution from a payroll, but you will see a warning message and a recommendation to contact Vestwell at to notify them of why the employee’s 401(k) deduction is being skipped for this payroll.

If an employee does not wish to have a 401(k) deduction taken from a specific payroll, they need to log into their Vestwell portal and stop their 401(k) election. No 401(k) deductions will happen on any further payrolls until the employee changes their election again. Keep in mind there is a time delay between when the employee makes the change in their portal and when Vestwell notifies Patriot of employee election changes. Most of the time, Patriot will make the change within one to two business days.

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