SECTION 3 PAYROLL REPORTING OF SECTION 3 CONTRIBUTIONS

Transcription

1 SECTION 3 PAYROLL REPORTING OF SECTION 3 CONTRIBUTIONS Contents PAYROLL REPORTING OF CONTRIBUTIONS...1 Member and Employer Contributions...1 Reporting Member Contributions to STRS Ohio...1 Sample Payroll Report Record Layout...2 Sample Payroll Report Header and Trailer Record Layouts...3 Sample Payroll report screen...4 Paying Contributions to STRS Ohio...5 Sample Cash remittance screens...6 Sample Form Cash Remittance...7 Payroll Adjustments Affecting a Prior Fiscal Year...8 Sample Backposting Record Layout...9 REGISTERING TO USE EMPLOYER SELF SERVICE...10 Sample Website access screens...11 Employers Manual Contents (6/15)

2 State Teachers Retirement System of Ohio

3 PAYROLL REPORTING OF CONTRIBUTIONS MEMBER AND EMPLOYER CONTRIBUTIONS Member contributions withheld from salary payments by the employer for all STRS Ohio members and reemployed retirees must be reported and paid to STRS Ohio no later than five business days after each pay date. Penalties and interest may be assessed for late reports or payments. If employer contributions are not paid through the state foundation program, employers are required to remit the employer contributions with the member contributions and payroll report. Total contributions reported on the payroll reports will be compared to the payments for member and employer contributions. Differences, if any, must be resolved before contributions can be credited to member defined contribution accounts. REPORTING MEMBER CONTRIBUTIONS TO STRS OHIO Payroll reports must be submitted to STRS Ohio using one of the following methods: Send an electronic file via secure file upload on the employer website. The file must be in the required file layout and include information required by STRS Ohio (see sample Payroll Report Record Layout and Payroll Report Header and Trailer Record Layouts on Pages 2 and 3). Submit the information through ESS on the employer website. (See the sample screen of a payroll report on Page 4.) If a payroll report has been sent in error or is incorrect, contact STRS Ohio immediately regarding resubmission of the data. Employers Manual Page 1 (6/16)

4 Payroll Report Record Layout You must use the following layout to transmit your payroll report via secure file upload on our website or FTPS transmission. Please include only contributions for STRS Ohio members. No. Name Description Start Location Length Format Valid Values 1 Record Type Identifies record for STRS Ohio processing. 1 4 Alphanumeric PAY=Payroll detail 2 Employer Number Four-character employer number (the first digit for city school districts is the letter C). 5 4 Alphanumeric STRS Ohio employer number 3 Pay Date Date on which employee was paid MM/DD/CCYY Date 4 Payroll Frequency Identifies schedule on which employee is paid. Helps STRS Ohio ensure payroll report is not missed (optional field) Alphanumeric W=Weekly, BW=Biweekly, M=Monthly, BM=Bimonthly, S=Supplemental/Special, O=Other 5 Social Security Number Social Security number of employee Numeric 6 Last Name 7 First Name Last name of employee. No punctuation except dash [ ]. First name of employee. No punctuation except dash [ ] Alphanumeric Alphanumeric 8 9 Member Pretax Contribution Member After-Tax Contribution Tax-deferred member contribution amount (employer pickup) ZZZZZZZ9.99 Taxed member contribution amount (regular) ZZZZZZZ9.99 Signed numeric, no commas, decimal in position 81 Signed numeric, no commas, decimal in position Notes Notes or comments related to the payroll detail transaction (optional field) Alphanumeric 11 Accrued Indicator Identifies whether or not the contributions are accrued (i.e., earned in the prior fiscal year) Alphanumeric Y=Yes, contributions are accrued, Space=No, contributions are not accrued 12 Reserved Space reserved for future use Alphanumeric Total record length = , 8/14/10 Page 2 (6/16) State Teachers Retirement System of Ohio

5 Payroll Report Header and Trailer Record Layouts A payroll report header and trailer record is optional but including one with your transmission will expedite processing your report by assisting us in matching payments with your payroll report. Including a trailer record with your transmissions will help ensure that all records have been received. If you elect to send a payroll report header or trailer record with your payroll reports, you must use the following layout. Report Header No. Name Description Start Location Length Format Valid Values 1 Record Type Identifies record for STRS Ohio processing. 1 4 Alphanumeric RH=Report Header 2 Employer Number Four-character employer number (the first digit for city school districts is the letter C). 5 4 Alphanumeric STRS Ohio employer number 3 Employer Name Name of employer (optional field) Alphanumeric 4 Payroll Type 5 Payment Method 6 Payment Reference Number 7 Payment Amount 8 Employer Reference Identifies payrolls with special processing requirements. Note: Applies to only payroll detail transactions (optional field). Identifies method of payment used (i.e., check or EFT) to submit employer s payroll obligation to STRS Ohio (optional field). Identifies employer s payment to STRS Ohio, either a check or EFT number (optional field). Payment amount forwarded to STRS Ohio for associated payroll. Employer contributions must be included unless paid through state foundation funds (optional field) Alphanumeric 53 4 Alphanumeric REG=Regular ZZZZZZZZZ9 Numeric ZZZZZZZZZ9.99 Available for employer use (optional field) Alphanumeric 9 Creation Date Date payroll report was created MM/DD/CCYY Date 10 Create Time Time payroll report was created HH:MM:SS Time 11 Reserved Space reserved for future use Alphanumeric Total record length = 256 Report Trailer CHK=Check, EFT=Electronic funds transfer Signed numeric, no commas, decimal in position 78 No. Name Description Start Location Length Format Valid Values 1 Record Type Identifies record for STRS Ohio processing. 1 4 Alphanumeric RT=Report Trailer 2 Employer Number 3 Number Records Four-character employer number (the first digit for city school districts is the letter C). Total number of records transmitted on the employer s report. Note: Applies to all record types. 5 4 Alphanumeric 9 9 ZZZZZZZZ9 Numeric STRS Ohio employer number 4 Reserved Space reserved for future use Alphanumeric Total record length = , 8/14/10 Employers Manual Page 3 (3/15)

6 09/11/ /11/ /11/ /11/2015 Payroll report screen Page 4 (12/15) Web Screen State Teachers Retirement System of Ohio

7 PAYING CONTRIBUTIONS TO STRS OHIO Employers must forward payment for member contributions to STRS Ohio no later than five business days after each pay date. If a school s employer share is not paid through the state foundation program, the employer must also pay employer contributions directly to STRS Ohio within five business days. Penalties and interest may be assessed for late payments. Direct Debit The preferred method to remit contribution payments is via direct debit. To submit a payment through direct debit: 1. Log in to Employer Self Service (ESS) using your user name and password. 2. Click on Make a Payment in the Application Menu. For step-by-step instructions on bank account setup and making direct debit payments, see our ESS instructions or watch the on-demand webinar on the employer website. ACH Credit or Wire Transfer To submit a payment through ACH credit or wire transfer: 1. Contact your bank to initiate payment. 2. Provide your bank with the STRS Ohio bank routing number ( ) and the bank account number ( ). STRS Ohio uses Fifth Third Bank in Cincinnati. Be sure to include XX followed by your four-digit STRS Ohio employer number in the description line of the transaction. 3. Send STRS Ohio information about the contribution payment using one of the following methods: Submit an online cash remittance via the employer website; or Mail or fax a completed Cash Remittance form (available on our website) to STRS Ohio at Checks While STRS Ohio encourages the use of direct debit, ACH credit or wire transfer of payments, contributions may be paid by check. Since payment must be received by STRS Ohio no later than five business days after each pay date, remember to allow time for the U.S. Postal Service to deliver the check payment. Please be sure to include your four-digit STRS Ohio employer number on the check. 1. All checks should be mailed to the STRS Ohio lockbox at the following address: Employers Manual STRS Ohio P.O. Box Cincinnati, OH Checks sent to STRS Ohio via overnight, certified mail or any other delivery method requiring a signature from the recipient of the check should be mailed to the following address: Fifth Third Bank Wholesale Lockbox M.D. 1MOC1Q Box Kingsley Drive Cincinnati, OH Send STRS Ohio information about the contribution payment using one of the following methods: Submit an online cash remittance via the employer website; or Mail or fax a completed Cash Remittance form (available on the employer website) to STRS Ohio at The check and form may be mailed together. Page 5 (6/16)

8 07/29/2016 $2, July 29, 2016 $2, /29/2016 $1, /29/2016 $ 2, Cash remittance screens Page 6 (6/16) Web Screens State Teachers Retirement System of Ohio

9 State Teachers Retirement System of Ohio 275 East Broad Street Columbus, OH CASH REMITTANCE Please send check(s) and this form to: STRS Ohio, P. O. Box , Cincinnati, OH If you use wire transfer or ACH, you can fax this form to or submit a cash remittance online. If you are submitting contributions for more than one employer, please complete a separate form for each employer. If you have questions, please call STRS Ohio toll-free at or visit Section 1 Employer Information Employer name Four-digit employer number Section 2 Payment Method and Amount Check(s) Total amount $ Wire transfer* Date Total amount $ ACH (Automated Clearing House)* Date Total amount $ *Complete a separate form for each wire transfer or ACH. Contribution Amounts Included in Payment Check number Leave blank if wire transfer or ACH Employee contributions Pay date(s) Amount Complete for check(s), wire transfer or ACH $ $ Employer contributions $ Pay date(s) $ Section 4 Other Amounts Included in Payment ARP contributions (submit monthly) (College or university ONLY) Fiscal month Check number Leave blank if wire transfer or ACH Amount Complete for check(s), wire transfer or ACH $ Payroll deduction for purchase of service credit Fiscal month $ Adjustments to member accounts $ Payment for invoice (Submit copy of invoice) $ Other $ Other $ Total of amounts in Sections 3 and 4 should equal the total payment amount listed in Section 2. Date submitted Signature , 3/17/0 Employers Manual Page 7 (6/17) Sample Form

10 PAYROLL ADJUSTMENTS AFFECTING A PRIOR FISCAL YEAR Employers occasionally make payments to employees for work performed in a prior fiscal year. These payments can result from a late time card, incorrect placement on a salary schedule, a performance bonus paid after June 30, or money paid as a result of a grievance or settlement. In addition, sometimes an employee is overpaid, making it necessary to adjust the employee s compensation for a prior fiscal year. When payments or adjustments are made to an employee s account for work performed in a prior fiscal year, employers must notify STRS Ohio if the amount was not included in the prior fiscal year s annual report by creating a backposting. Because STRS Ohio benefits are based on earned compensation reported in the annual report, this information must be accurate. Reporting payments and backposting adjustments on a timely basis allows us to amend your annual report for the fiscal year and provide accurate benefit payments to members. For example, in September 2017, a teacher turns in a time card for a supplemental contract earned in June Contributions on the earnings are remitted to STRS Ohio with the Sept. 1, 2017, payroll report. Due to the late receipt of the time card, the contributions were not included in the annual report. Therefore, it is necessary to make a backposting adjustment so the contributions can be included with the fiscal year. In this example, the employer correctly remitted contributions to STRS Ohio with the payroll report for the pay period in which the teacher was actually paid. In addition, the employer needs to create a backposting adjustment to notify STRS Ohio that the annual report should be adjusted since the money was actually earned in the fiscal year. As a reminder, contributions should always be remitted at the contribution rate in effect at the time the money was earned. Adjustments resulting from a grievance or settlement must be reviewed by STRS Ohio to determine if the amount can be included in compensation. Send a copy of the settlement to your employer education coordinator for review before submitting contributions. To notify us that an adjustment should be made to a prior fiscal year s annual report, you can: Use ESS to complete and submit an online backposting report on the employer website (written instructions and a tutorial video for completing a backposting report are available on the website). You must explain why the backposting needs to be made in the Notes section of the online report. Send an electronic adjustment record (see sample Backposting Record Layout on Page 9). Contact the Employer Reporting Department for more information. STRS Ohio recommends using this method when you are making adjustments to multiple accounts. If you owe interest on adjusted contributions, STRS Ohio will include the interest amount in your monthly statement of backpostings. You can also calculate interest using the related calculator on the employer website. If you have questions about payments and backposting adjustments, call the Employer Reporting Department toll-free at or send an to report@strsoh.org. Page 8 (6/17) State Teachers Retirement System of Ohio

11 Backposting Record Layout If payments or backposting adjustments are made to a member account for work performed in a prior fiscal year, you must notify STRS Ohio if the amount was not included in the prior fiscal year s annual report. Member contributions for these backposting adjustments must be included in your payroll reports when the member is paid. The notification of the backposting can be made via an online backposting report on ESS or secure file upload on our website. If you choose to submit electronically, the following layout is required. Note: Backposting adjustments should not be reported for contributions that are included in accrued contributions on the annual report. No. Name Description Start Location Length Format Valid Values 1 Record Type Identifies record for STRS Ohio processing. 1 4 Alphanumeric ADJ=Backposting 2 Employer Number Four-character employer number (the first digit for city school districts is the letter C). 5 4 Alphanumeric STRS Ohio employer number 3 Pay Date Date on which employee was paid MM/DD/CCYY Date 4 Adjustment Fiscal Year Identifies the fiscal year in which the contribution was earned. The STRS Ohio fiscal year runs from July 1 through the following June 30. Fiscal year is from July 1, 2016, through June 30, CCYY CCYY Fiscal year 5 Social Security Number Social Security number of employee Numeric 6 Last Name 7 First Name Last name of employee. No punctuation except dash [ ]. First name of employee. No punctuation except dash [ ] Alphanumeric Alphanumeric 8 9 Member Pretax Contribution Member After-Tax Contribution Tax-deferred member contribution amount (employer pickup) ZZZZZZZ9.99 Taxed member contribution amount (regular) ZZZZZZZ9.99 Signed numeric, no commas, decimal in position 86 Signed numeric, no commas, decimal in position Service Credit Service credit that applies to the associated adjustment of contributions Signed numeric, decimal in position Notes Notes or comments related to the backposting adjustment transaction (optional field) Alphanumeric 12 Reserved Space reserved for future use Alphanumeric Total record length = , 3/16/10 Employers Manual Page 9 (6/16)

12 REGISTERING TO USE EMPLOYER SELF SERVICE Employer Self Service (ESS) is a secure area of the STRS Ohio Employer Website that allows employers to access information about their STRS Ohio account and submit required reports electronically to STRS Ohio. This secure method of online reporting is a convenient way to provide data to STRS Ohio. The following online applications are available in ESS: 1. New hire notification; 2. Reemployed retiree notification; 3. Employer reports (online payroll reporting data, remittance for purchase of service credit, backposting adjustments, annual report member data, and completion of service credit and accrued verifications); 4. Retirement reporting (online completion of deposit and service reports for new retirees); 5. Documents; 6. Estimated payroll (online submission of estimated annual payroll); 7. GASB reports; 8. Employer education registration; 9. Make a payment (online payments through direct debit); 10. Employment Verification; and 11. Withdrawal Certification. To gain access to ESS on the employer website, follow the steps below (see sample screens on Page 11). 1. Go to the employer website at and select the Register for Access to ESS in the top right corner. 2. Please include the name, title, phone and address for the contact person needing the ESS account. You will also need to indicate whether access should be granted to all functions or be limited. Also be sure to provide your employer number. 3. Notification will be sent directly to the user when the account has been activated. Page 10 (11/17) State Teachers Retirement System of Ohio

13 t STRS Ohio Employer Website home page ESS online registration form screen Employers Manual Page 11 (11/17) Web Screens

14 State Teachers Retirement System of Ohio