|Members Retirees Employers|
Employee and employer contributions are required to be made to SERS based upon the employee’s SERS compensation.
The employee’s contributions are deducted from the employee’s compensation, and the employer remits a separate contribution, called the employer contribution.
The employee contributions should be withheld from the employee’s payroll during each payroll period in an amount equal to the current contribution rate, which is set by the Board. The employee contribution rate is currently 10%. The employer contribution rate is 14%.[Read More...]
Per pay contributions are to be remitted to SERS no later than five business days from the pay date/reporting date. It is important to remit contributions promptly and accurately. Failure to do so may result in the accural of penalties. Employee or survivor benefits are dependent on accurate compensation information reported to SERS.[Hide]
“Compensation” includes all salary, wages, and other earnings paid to an employee by reason of employment. Compensation is determined prior to the amount deducted as the employee’s contributions and before any of the compensation is treated as deferred income for federal income tax purposes.[Read More...]
Compensation subject to SERS contributions includes, but is not limited to:
Compensation not subject to SERS contributions, includes, but is not limited to:
When a question exists as to whether a payment is subject to SERS’ withholding, the employer should request, in writing, a determination from SERS. This request should include complete information about the compensation (contract, board resolutions, etc.). SERS may request additional information to make a determination.[Read More...]
Upon a review of all the information, SERS’ staff determines if the payment is considered covered compensation. If an employer or the individual whose payment is at issue questions a staff determination, an appeal may be taken to the Board. The Board is responsible for a final determination, and all decisions of the Board are final.
If you do not request a determination from SERS on a payment issued to an employee, and it is determined that the payment is not compensation for SERS’ purposes, any contributions received on the payment will be considered unauthorized and refunded back to the employer.
However, if you do not request a determination from SERS on a payment issued to an employee, and it is determined that the payment is compensation for SERS’ purposes, you will have 30 days to certify the earnings paid to the employee on the Certification of Salary for Non-Contributing Service Form (35.2).
A charge will be made to you for both the employee and employer contributions, plus interest.
Failure to certify the earnings will result in a charge based on estimated figures. Once the cost has been calculated and submitted, you have 30 days to send payment. If the payment is not received by SERS within 30 days of such notification, a charge against the school district will be made for collection through the Foundation Program funds, where available, or by direct billing.[Hide]