TPAs Shouldn't Be Manual Data Entry Between Payroll and Recordkeepers
PayKonnect automates the payroll-to-recordkeeper data flow that TPAs sit in the middle of — handling the long tail of payroll formats, SECURE 2.0 fields, and return elections that create TPA correction work every pay period.
The Integration Challenges You're Facing
Data errors from payroll systems land on your desk — wrong amounts, missing participant IDs, format mismatches that require manual correction
SECURE 2.0 adds compliance complexity that requires correct payroll data (catch-up thresholds, super catch-up limits) you may not be receiving
Your small-business clients use dozens of different payroll systems and expect you to 'make it work' regardless of format
Manual data re-entry between payroll exports and recordkeeper uploads is error-prone and time-consuming — but someone has to do it
How PayKonnect Solves This
Multi-format engine handles payroll data from small and regional systems (CSV, XML, fixed-width) that larger platforms ignore
SECURE 2.0 fields natively supported: Roth catch-up designation, super catch-up flag (ages 60–63), prior-year and YTD Social Security wages
Managed service model reduces TPA operational burden — PayKonnect handles format changes and regulatory updates
360° return flows allow recordkeeper-initiated deferral changes and loan updates to flow back to employer payroll systems automatically
Relevant Integration Types
The TPA Data Problem
Third-party administrators sit at the intersection of three data systems: employer payroll, plan recordkeepers, and IRS compliance requirements. When data flows correctly, TPAs add value through plan design, testing, and strategic guidance. When payroll data arrives late, malformed, or missing required fields, TPAs become highly paid data correctors.
SECURE 2.0 expanded the list of required payroll data fields that TPAs need to validate — and the required correction work when those fields are wrong or absent.
The Long Tail of Payroll Systems You Manage
Your small-business clients don’t use enterprise payroll platforms. They use QuickBooks Payroll, Sage, regional payroll bureaus, and sometimes systems you’ve never heard of that export to whatever file format the owner figured out five years ago. Every one of those systems needs to get contribution and census data to a recordkeeper in that recordkeeper’s specific required format.
PayKonnect’s multi-format engine is built for exactly this problem. It ingests data in any format, applies your field mapping and business rules, and delivers it in the recordkeeper’s required format. For TPAs managing dozens of small plans across multiple payroll systems and multiple recordkeepers, this is the difference between a workable workflow and a constant manual intervention cycle.
SECURE 2.0: What TPAs Need From Payroll Data
Under the IRS September 2025 final regulations, TPAs are accountable for plan compliance — including correct catch-up contribution treatment. For participants earning $145,000+ in prior-year FICA wages, catch-up contributions must be designated as Roth. For participants aged 60–63, the super catch-up limit ($11,250 for 2026) applies.
Both of these require specific payroll data fields:
- Prior-year Social Security wages (for Roth catch-up designation)
- Super catch-up designation flag (for ages 60–63)
- YTD Social Security wages (for in-year tracking)
PayKonnect passes all three fields as of January 2026. If a plan’s payroll system isn’t sending these fields, PayKonnect flags the gap during transformation so you can address it before contributions are processed incorrectly.
See the dedicated SECURE 2.0 payroll integration page for the complete regulatory context, or visit provider coverage to verify support for your clients’ specific payroll systems.