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Employers Manual
Payroll Reporting of Contributions
Payroll Adjustments Affecting a Prior Fiscal
Year
Employers occasionally make payments to employees for work performed
in a prior fiscal year. These payments can result from a late time card,
incorrect placement on a salary schedule, a performance bonus paid after
June 30 or money paid as a result of a grievance or settlement. In addition,
sometimes an employee is overpaid, making it necessary to adjust the
employee’s compensation for a prior fiscal year.
When payments or adjustments are made to an employee for work performed in a prior fiscal year, employers must notify STRS Ohio if the amount was not included in the prior fiscal year’s Annual Report.
Because STRS Ohio benefits are based on earned compensation reported in the Annual Report, this information must be accurate. Reporting prior fiscal year payments and adjustments on a timely basis allows us to amend your Annual Report for the fiscal year and provide accurate benefit payments to members.
For example, in September 2008, a teacher turns in a time card for a supplemental contract earned in June 2008. Contributions on the earnings are remitted to STRS Ohio with the Sept. 12, 2008, payroll report.
Due to the late receipt of the time card, the contributions were not included in the 2007-2008 Annual Report. Therefore, it is necessary to make an adjustment so the contributions can be included with the 2007-2008 fiscal year.
In this example, the employer correctly remitted contributions to STRS Ohio with the payroll report for the pay period in which the teacher was actually paid. In addition, the employer needs to notify STRS Ohio that the 2007-2008 Annual Report should be adjusted since the money was actually earned in the 2007-2008 fiscal year.
Adjustments resulting from a grievance or settlement must be reviewed by STRS Ohio to determine if the amount can be included in compensation. Send a copy of the settlement to your employer advisor for review before submitting contributions.
To notify us that an adjustment should be made to a prior fiscal year’s Annual Report, you can:
- Send a letter indicating the pay date, contribution amount, prior fiscal year to be adjusted and, if applicable, service credit to be adjusted.
- Complete and submit a Web-based
Prior Fiscal Year Adjustment form on the STRS Ohio Employer Web Site
if the adjustment is less than $100 in contributions.
If you use the Web site, you must explain why the adjustment needs to be made in the “Notes” section of the Web-based form. If the adjustment is more than $100 in contributions, you can still use the Web site to submit the adjustment. However, before we can process it, we must receive a letter from you documenting the reason for the adjustment.
STRS Ohio can accept electronic adjustment records upon request —
see sample Prior Fiscal
Year Adjustment Record Layout. Please contact your employer
advisor for more information.
If you owe interest on adjusted contributions, STRS Ohio will include the interest amount in your monthly statement of backpostings. You can also calculate interest using the related calculator on the STRS Ohio Employer Web Site.
If you have questions about prior fiscal year payments and adjustments, please call your employer advisor toll-free at 1-888-535-4050 or send an e-mail to report@strsoh.org.
