Employer Payroll 529 Program Deductions

1
Employer Payroll 529 Program Deductions

• Multiple States Programs with Multi-State
  Employee Payroll Systems

2
Todays Challenge

• A QTP 529 program is not the same as a 401k plan!
• Businesses with operations in multiple states are
  being asked to target a single state 529 program
  for payroll deductions and employer contributions.

3
Todays Challenge

• The state of the employer might not be the best
  529 program for the employee or their
  beneficiary.
• Payroll deduction programs supporting choices
  among several programs are difficult to maintain

4
An alternative approach

• Open Selection Employees could select the state
  program that best fits their needs.
• Payroll Deduction Employees set up deductions
  for their selected 529 program

5
An alternative approach

• Clearinghouse Deductions are passed
  electronically to a clearinghouse and then passed
  directly to the appropriate states systems.
• Benefit Programs Employers are encouraged to
  develop matching payment programs for their
  employees

6
SCT College Savings 529 Clearinghouse
SCT Workflow Smart Events
SCT Voice Response Access
Employers Internet or Intranet
SCT ePrint Communications to Employer and State
Programs
Employee
Employee uses the company, CSPN or financial
organizations intranet sites to research 529
plans, enroll in one or more plan, and set up
payroll deduction.
Web for Employees Access
Internet and Funds Transfer
Employers Payroll System
BFDS State
S State
DST State
InTuition State
Omni State
Non-Commercial System State
States subscribe to the SCT 529 Clearinghouse
Process
7
What must be available

• 529 Support with States and business
• Automated workflow processes
• Real-time (Internet-based) communications
• Support center for employers and states
• Simple to maintain automated processing between
  State systems and the Clearinghouse

8
What must be available

• Web integration with employers systems
• Application of Connect Learning
  (e-learning) products
• Content (programs description) management