Membership Determination Tips

 

Common Law Employee or Independent Contractor?

If you contract directly with a person to provide services, and the nature of the person’s relationship to you is that of an employee – not independent contractor – that person must contribute to SERS.

Simply including language in the agreement stating the relationship is that of an independent contractor does not determine the classification. You should consult with your school district’s legal counsel when deciding if an individual working for the school district is properly classified as an independent contractor.

 

Contract Employees

If you contract with an entity to provide workers for a service “common to the normal daily operation” of a school, those workers should contribute to SERS.

According to Ohio law, SERS membership is required for “Any person who performs a service common to the normal daily operation of an educational unit even though the person is employed and paid by one who has contracted with an employer to perform the service, and the contracting board or educational unit shall be the employer for the purposes of administering the provisions of this chapter.”

“Service common to the normal daily operation of an educational unit” is more than just transportation, food service, and custodial functions. It is any service:

• Required to be provided by a school or the provision of which is governed by law, statute, or rule, or
• Necessary on a regular continuous basis to the efficient operation of a school, or
• Customarily provided or used by a school on a regular or continuous basis

 

Important Note:

Contract employees who provide health care services as part of an IEP ARE SUBJECT TO MEMBERSHIP IN SERS.

 Just because a vendor tells you that the workers they provide are exempt from membership in SERS does not mean that they are, in fact, exempt. Contact SERS to confirm whether or not the workers need to contribute to SERS.

The school district – not the vendor – will be financially responsible if it is later determined that the workers should have been reported to SERS.

 

Remember, if you have a question about whether an individual should contribute to SERS, you should request a membership determination. SERS requires a copy of the job description and/or the contract.

Depending on the type of membership determination, we may request that you fill out the Membership Determination Form.

The law places the risk of an incorrect membership determination on the employer. This means if a membership question arises, and SERS determines the individual is an employee and should be contributing to SERS, you are responsible for the employer and employee contributions, plus interest.

If you have questions about membership, contact Employer Services at employerservices@ohsers.org or 1-877-213-0861.