180° vs. 360° Payroll Integration: What's the Difference and Which Do You Need?

180° integration is one-way: payroll data (census and contribution) flows from the payroll system to the recordkeeper each pay cycle. 360° integration adds a return path: participant elections, deferral changes, and loan updates flow back from the recordkeeper to the payroll system. Most employers start with 180° and add 360° when they want to eliminate manual handling of participant election changes.

180° integration is sufficient if you are okay with manual handling of deferral election changes — someone at the employer or TPA must key in changes each time a participant updates their deferral or takes a loan. 360° integration is the right choice if you want those changes to flow automatically, reducing lag and manual keying errors. For retirement platforms promising "automatic payroll sync," 360° is typically required for the full experience.

No. 360° API write-back requires the payroll system to expose a write API — which modern platforms (Gusto, Paycor, some ADP configurations) do, but legacy and desktop payroll systems generally do not. For systems without write APIs, PayKonnect uses structured notification workflows that give the payroll operator exactly the fields they need to key in — significantly faster and less error-prone than decoding raw recordkeeper communications.

Not strictly required, but strongly recommended. SECURE 2.0 Section 101 requires new plans to auto-enroll participants at 3% deferral. That initial election must reach the payroll system before the next payroll run. Without 360° integration, this requires manual intervention for each new auto-enrolled participant — which can be a significant operational burden as auto-enrollment becomes standard.

Return data includes: deferral rate changes (participant increases or decreases their contribution percentage), new loan initiations and repayment amounts, loan repayment modifications, initial auto-enrollment elections, and hardship distribution notifications. The exact return data types depend on the recordkeeper's capabilities and the integration configuration.

Most major recordkeepers (Ascensus, Empower, Fidelity, Transamerica, John Hancock, Vestwell) support return data workflows. The mechanism varies — some use direct API for return data, others use structured file exchange. PayKonnect handles both approaches and manages the recordkeeper-side format for return data delivery.