Employees Save More Through 401(k) Auto Enrollment

ROCHESTER, N.Y., June 16 /PRNewswire-FirstCall/ -- Paychex, Inc., a leading provider of payroll, human resource, and benefits outsourcing solutions for small- to medium-sized businesses, wants small business owners to know that more employees save for retirement when their 401(k) plans include an automatic enrollment feature. The company's latest white paper focuses on how 401(k) auto enrollment plans can benefit both employees and businesses.

Paychex explains in the new white paper, Retirement Readiness for Business Owners and Employees: 401(k) Automatic Enrollment, that 92 percent of employees participate in 401(k) plans after they are automatically enrolled, compared to only 72 percent without auto enrollment. Readers can also learn:

• Which employees may be automatically enrolled in 401(k) plans
• How automatic enrollment can lower plan administration costs and save businesses time in the enrollment process
• How the contribution limits for business owners and key employees can rise with more employees participating in a 401(k) plan

The new Paychex white paper also covers topics such as how to start a 401(k) plan for small business, how to select a 401(k) recordkeeper, and how to select initial investments for automatically enrolled employees.

"By avoiding the administrative hassles of traditional enrollment meetings, business owners can help their employees get started on building a nest egg," said Janice Nearen-Bell, vice president of Human Resource Services Sales for Paychex. "Auto enrollment is a proven way for employees to start saving and to keep at it."

For a free copy of the Paychex white paper, visit https://www.paychex.com/secure/whitepaper/401kautoenroll.aspx?nl=PRN20100618.  

About Paychex

Paychex, Inc. (Nasdaq: PAYX) is a leading provider of payroll, human resource, and benefits outsourcing solutions for small- to medium-sized businesses. The company offers comprehensive payroll services, including payroll processing, payroll tax administration, and employee pay services, including direct deposit, check signing, and Readychex®. Human resource services include 401(k) plan recordkeeping, health insurance, workers' compensation administration, section 125 plans, a professional employer organization, time and attendance solutions, and other administrative services for business. Paychex was founded in 1971. With headquarters in Rochester, New York, the company has more than 100 offices serving approximately 554,000 payroll clients nationwide as of May 31, 2009. For more information about Paychex and our products, visit www.paychex.com.

Editor's Note: Journalists can receive a copy of the white paper from the Paychex media contact listed below.  

SOURCE Paychex, Inc.