Penalties

Ohio law requires SERS to impose reporting and payment penalties for lateness. SERS may extend a due date for “good cause” if the request is received before the due date, but there is no allowance for one-time forgiveness after the due date.

Payment Penalties

As explained in paragraph (A) of Ohio Revised Code 3309.571:

(A) For a failure to transmit contributions withheld from employees not later than the date specified under rules adopted by the school employees retirement board, one hundred dollars per day for each day the employer fails to transmit the contributions;

Employee contributions are to be remitted to SERS no later than five business days from the pay date in eSERS.

You will be penalized $100 per day for each business day you do not transmit employee contributions on time. This penalty will accrue until the contribution is received.

As explained in paragraph (B) of the statute:

(B) For a failure to transmit any amount due the employer’s trust fund not later than the date specified under rules adopted by the board, one hundred dollars per day for each day the employer fails to transmit the amounts;

Employer Trust Fund covers all employer payments to SERS, such as employer contributions, surcharge, the Annual Employer Statement Balance, Service Credit Purchase (SCP), and Early Retirement Incentive (ERI). Each of these payment types has its own set of due dates.

You will be penalized $100 per day for each business day you do not transmit any amount due to the employer’s trust fund on time. This penalty will accrue until the contribution is received.

For those districts that are using the Ohio Department of Education and Workforce (DEW) Foundation Program to pay their employer contributions, the payment is always considered to be “on-time” for reporting and penalty purposes.

Reporting Penalties

As explained in paragraph (C) of the statute:

(C) Except for a statement required by section 3309.28 of the Revised Code, for a failure to submit, complete, or correct any payroll information or other report required under this chapter not later than the date specified under rules adopted by the board, one hundred dollars per day for each day the employer fails to submit, complete, or correct the information or report, except that the penalty shall not exceed one thousand five hundred dollars;

This covers all other employer reporting to SERS. Payroll (contribution) reporting is due no later than five business days from the pay date in eSERS. Other reports have their own due dates.

You will be penalized $100 per day for each business day you do not submit, complete, or correct contribution reporting (including the Payment Remittance) information on time. This penalty cannot exceed $1,500 per report.

For employers using the Ohio Department of Education and Workforce (DEW) Foundation Program, payment of the penalty may be deducted from the amounts directed to employer contributions.

For all other employers, the penalty is paid directly using one of the payment remitting options. Your penalty liability to be paid will be located in the Payment Remittance application on eSERS.