ADP and Betterment Announce Integration

Betterment for Business’ 401(k) service will soon be available in the ADP Marketplace, described as a “cloud-based app ecosystem for human capital management.”

According to the firms, the integration “represents ADP’s first-ever API integration, allowing for a full, secure, and seamless integration between Betterment’s 401(k) services and ADP’s payroll service.”

Via the integration, Betterment for Business “aims to offer a superior participant experience that leads to better retirement outcomes … enabling a secure and accurate integration between the ADP payroll system and Betterment for Business, without lifting a finger.”  

The firms suggest other benefits will include “seamless and efficient” exchange of information between providers, “easier collection and more accurate census data including eligibility tracking and plan entry dates,” and a better ability to respond to growing employer scale.

“Behind the scenes, this 360-degree integration will allow for payroll information from ADP to be fed directly into Betterment for Business, and vice versa,” the firms note. “Typically, vendor integrations are executed one of two ways: a file transfer protocol, an exchange of files between companies, or screen scraping, the action of using a computer program to copy data from a website.  Both solutions have significant limitations. FTP places the onus on the plan sponsor to undergo a lengthy file set-up process and the communication between systems occurs once per day, at a maximum. Screen scraping is brittle and inflexible.”

To solve for these limitations, Betterment for Business plans to “lead ADP’s first-ever API integration, allowing for a full, secure and seamless integration between our 401(k) service and ADP’s payroll service.  The result is a flexible and fluid communication between our systems, making the process automated and seamless for the plan sponsor. “

More information is available at