Chapter 8: Transmittal Reporting
Overview
Reporting and Your Payroll Cycle
Impacts to Plan 3
Retirement system transmittal reports are due to DRS by the 15th of the month following the month being reported; e.g., the December transmittal is due January 15. However, DRS recommends employers transmit their retirement system reports as soon after each pay day as possible. This schedule supports timely investment of Plan 3 member contributions.
Deferred Compensation Program
The DCP transmittal report must reflect participants' deferral information as of each payday. Employers with more than one payday in a month must submit a DCP transmittal report for each payday. One exception to this rule applies to bi-weekly payroll cycles. (DRS expects only two reports-even for the two months that have three pay dates.)
Retirement Systems
The regular transmittal report must reflect the reportable compensation paid to retirement system members during the month being reported. Compensation must be identified by the month and year in which it is earned. Report compensation as earned, not as paid. (The earning period field allows employers to record when the compensation was earned.)
Note: School districts and educational service districts have special reporting situations that may allow them to report some compensation as paid or evenly over the work periods in the school year. Refer to Chapter 5, School District and Educational Service District Pay Adjustments for what qualifies.
Employers with more than one payroll cycle in a month can submit a transmittal report once a month or with each payroll cycle. Employers need to contact ESS to arrange the transition from one report per month to multiple reports. The following pages provide examples of transmittal reporting of retirement contributions for the different payroll cycles. The examples below are intended to explain only when information should be reported and does not reflect the multiple record layout.
Monthly Payroll Cycles
Example #1:
Your payroll cycle is set so an employee is paid on January 31 for work performed from January 1-31. You pay compensation in the same month in which it is earned.
You can report the employee using one line of the transmittal. Use a January earning period to report the compensation earned from January 1-31. Report this information on the January transmittal due to DRS by February 15.
Example #2:
Your payroll cycle is set so that an employee is paid on February 28 for work performed from January 16-February 15. You pay compensation in one month that is earned in two different months (or earning periods).
You must report the employee using two lines on the transmittal. On one line, use a January earning period to report the compensation earned from January 16-31. On a second line, use a February earning period to report the compensation earned from February 1-15. This report would be for the reporting period of February due to DRS by March 15.
The transmittal for the reporting period of March would be due to DRS April 15 and would have the compensation earned from February 16-28 and from March 1-15.
Bi-Weekly Payroll Cycles
Example #3:
Your payroll cycle is set so that an employee is paid on February 13 for work performed from January 25-February 7 and is paid on February 28 for work performed from February 8-21. You pay compensation in one month that is earned in two different months (or earning periods).
In this case, you must report the employee using two lines on the transmittal. On one line use a January earning period to report the compensation earned from January 25-31. On a second line, use a February earning period to report the compensation earned from February 1-21. Report this information on the February transmittal due to DRS by March 15.
Compensation earned from February 22-March 7 and paid on March 13 is reported on two lines. On one line, use a February earning period to report the compensation earned from February 22-28. On a second line, use a March earning period to report the compensation earned from March 1-21. These earnings are reported on the March transmittal due to DRS by April 15.
Note: The bi-weekly examples above can be applied to semi-monthly payroll cycles. As previously stated, reports are due on the 15th of each month, but DRS recommends employers submit reports as of each payday.
