Case Studies



Find a way to improve and simplify the process of benefits distribution processing


Company Situation

AmbroseAdvisors is a full-service TPA that specializes in ESOPs. The majority of ESOP sponsors don’t have distribution capabilities provided to them by an institutional custodian, so AmbroseAdvisors needed to handle this for them or they needed to handle it inhouse. The process was manual and paper-intensive. As their business grew they found that too much valuable staff time was being absorbed by this clerical work, and the opportunity costs were mounting. They started to look for a “better way” to process payments.

There were also other common processing problems; 1) companies would fail to timely remit withheld payroll taxes and/or 2) the IRS would confuse the amounts withheld from the plan distribution with the company’s regular payroll withholding – both situations would require time-consuming and costly resolution. Finally, all companies, even the small ones, would need to register in each state in which a plan participant resides, creating a significant administrative burden.

The PenChecks Solution

PenChecks immediately came in and took over all benefit distribution processing; including the reporting of all distribution activity to the IRS and state revenue agencies under their account numbers, keeping it away from the company.

PenChecks also remits withheld taxes in a timely manner and is registered in all 40 states which accept withholding. As an added bonus, their well-designed platform also provides plan participants a tremendous level of control and choice, which makes AmbroseAdvisors’ clients look great to their employees.


Clients have reduced their benefits distribution processing costs by 30-50% and have more control over the process. Marcus is also confident that the firm is 1/3 larger than it would have been had they not begun working with PenChecks; and they have saved thousands of dollars for their clients as well. His staff is now freed up from tedious paperwork tasks to spend more time on business-building activities.

Importantly, AmbroseAdvisors believes they now have the systems and processes to better compete with the larger financial institutions.

PenChecks - Save Time, Reduce Risk, and Lower Operating Costs: Call 800.541.3938 or .