DRS Notice 24-005, Deferred Compensation Program (DCP) Reporting Reminders

Date: February 23, 2024
Applies to: DCP Employers
Subject: DRS Notice 24-005, Deferred Compensation Program (DCP) Reporting Reminders

We wanted to bring to your attention a few reporting reminders for DCP.

Change Report
The Deferral Change Report advises the employer of changes to DCP deductions. Do not start, stop, increase or decrease an employee’s deferral until the change appears on the DCP Deferral Change Report.

When Roth was added as an investment option to DCP, the DCP Deferral Change Report was updated to include Pretax and Roth (taxed) changes. As a reminder, the change report will reflect only changes made. If a member contributes to both ROTH and Pretax at the same time and only makes a change to one, then that is the only data that will show on the Change Report.

For example: Your employee contributes $100 to ROTH (taxed) and $100 to Pretax . They decide to increase their contribution to ROTH to $200. Only the ROTH contribution will appear on the Change Report because that is what changed. However, you still need to continue to report the $100 to Pretax since there was no change made.

Timely Payments
Transmittals and payments are due within five business days past the payroll date.

Regular vs Correction reports
This reminder is primarily for Higher Education Employers. When using ERA Interactive to complete a DCP correction report please make sure that you select the Correction option for the Report Type when creating the report.

If you do not select Correction for your Report Type, the report will process as a regular report and cause your DCP payroll file to reject with code 407 – There is already another case with these characteristics. You will then have to work with ESS to get your payroll file uploaded again.

If you have any questions regarding this DRS Notice, please contact Employer Support Services at 360-664-7200, option 2, or 800-547-6657, option 6, option 2 or email us.