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Does anyone out there think there is a niche in our industry to own or partner with non-competing Payroll Companies? I've been approached by a payroll firm that is owned by prior long-term employee of a TPA Firm trying to break through to our industry. They offer revenue sharing to market payroll products to current and prospective clients and outsource to them. This has some advantages I see in doing away with census requests and waiting until the 11th hour to get the client to send us their data. They would process payroll deposits and send the 401(k) money directly to the vendor, among other things..... This would allow the TPA to provide quicker service and offer more of a one stop shop to the client.

We currently work with payroll companies and are able to get reports but there is always that fear that they are two steps away from stealing the client and obviously there is no revenue sharing involved.

Just curious as to what others are doing and what opinions are out there.

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1. If your model for bundled services is ADP, I hope your plan administrative services are not the same abomination.

2. There are certain areas in which payroll services and retirement plan administration services can conflict, especially if the retirement plan services involve consulting. I have never had a client change payroll providers because the payroll provider failed or refused to accommodate a recommended plan feature, but at least I felt that I could give appropriate advice without restraint. If I were associated with the payroll provider, would I consider giving the advice that would effectively be shot down on the payroll end?

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Thank you for your response QDROphile, No, our model is not ADP! Not a fan of them.

would you mind giving some examples of what you are referring to? We are a non-producing consulting TPA and work with a lot of different brokers. I think the same could be true for them too as we sometimes give advice on design features that may be good for the client but bad for the broker.....but rarely, if ever, have we lost a client because of this.

Mulling it over as I think it could make things easier on the client.

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