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Compensation & Payroll Reporting
Member contributions of 10% must be submitted for all STRS Ohio compensation earned by a teacher and included in payroll reports.
What Is STRS Ohio Compensation?
- Compensation is salary and wages, including amounts paid for a supplemental contract.
- If an employee benefit cafeteria plan or flexible spending account is available, compensation for STRS Ohio is the gross salary before reduction.
What Is Not STRS Ohio Compensation?
- Payments for accrued but unused sick leave, personal leave and vacation leave, including payments for perfect attendance.
- Vacation pay concurrent with other periods for which compensation is paid.
- Amounts paid to provide insurance coverage or cash payments in lieu of providing insurance, including payments for Medicare.
- Payments that are based on retirement.
- Retroactive increases unless they are:
- Paid to all teachers on a uniform basis; or
- Paid to all administrative employees on uniform basis; or
- Paid to a superintendent if also paid to all teachers.
- Payments for services not actually rendered.
- Reimbursed job-related expenses.
- Earnings over amounts allowed under IRS regulations. The Internal Revenue Service places limits on the amount of compensation on which contributions may be remitted for members of STRS Ohio. These limits can vary depending on the type of plan a member participates in.
- Payments under Section 5923.05, R.C., made by employers to teachers called to active military duty.
Note: Refer the Employers Manual for a complete discussion of STRS Ohio compensation.
Making Contributions on Teacher Professional Organization (TPO) Compensation
- STRS Ohio members who are paid for service to TPOs may qualify to make contributions on some or all earnings for this service.
- STRS Ohio Board Rules 3307-6-01 and 3307-6-02, effective July 1, 2001, permit contributions on compensation for TPO service both before and after the effective date.
- Beginning July 1, 2004, payment for service to a TPO can only qualify for retirement contributions if a collective bargaining agreement between an employer and a TPO specifies that compensation will be paid for such service.
- The amount of TPO compensation that can be contributed on is limited.
What Are Payroll Reports?
Reports that show the member contributions by individual member after each payroll period.
Payroll Reports Must Include:
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Employer number, pay date, member SSN, name, pretax member contributions and after-tax member contributions.
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If an employer offers a fringe benefit pickup plan included in compensation for retirement purposes, total member contributions must include the additional contributions due. For example:
Member earned $1,000 during the pay period. They also receive a 10% fringe benefit included in compensation. For retirement purposes, total contributions reported and submitted to STRS Ohio should be $110.00 ($1,100 x 10% member contribution rate).
When Are Reports & Contributions
Due?
Reports and payment of member contributions are due with each payroll
report within five business days after the payroll date.
Payments for fringe benefit pickup plans paid by the employer must be sent with payroll reports each pay date.
Penalties and interest may be assessed for late reports and payments. Reports must be submitted electronically via one of the following methods:
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Online entry (click here to register);
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Secure e-mail; or
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FTP transmission.
After submission, all reports are available in the Employer Account Information area of the STRS Ohio Employer Web Site:
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If a notification e-mail address is on file with STRS Ohio, you will receive confirmation that your report has been received.
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If errors are found in your report, you will be notified by e-mail or phone.
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Corrections to errors can be made via the STRS Ohio Employer Web Site.
Details about contribution payments must be sent using one of the following methods:
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Employer Cash Receipt
Remittance Form, which can be mailed or faxed to STRS Ohio;
or -
Included in the header record of the electronic transmission.
Deposits of contributions via ACH or wire transfer is preferred.
What Happens After STRS Ohio Receives
Reports & Contribution Payments?
Payroll reports and contributions are reconciled at STRS Ohio and
posted to Defined Contribution Plan and Combined Plan member accounts.
Reports are not considered reconciled or completed until full payment
of contributions is received.
Making Adjustments or Corrections to Payroll Reports
Corrections to payrolls (voids, additional hours paid, etc.) may be
submitted individually or with the next payroll report.
Note: Negative contribution amounts are accepted in payroll reports.
If a payroll report is submitted with errors, you can call STRS Ohio to arrange the submission of a “replacement” or “correction” report.
Do not submit negative payroll entries to change the retirement system of an employee incorrectly reported to STRS Ohio. Please send STRS Ohio a letter requesting the return of contributions.
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