Determinations of Compensation

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, such as contract or board resolutions. SERS may request additional information to make a determination.

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 are 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.

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.