Payroll Reporting

1. When are payroll reports and contributions due?
2. Is the five-business-days deadline calculated from the date of the payroll run or the actual pay date?
3. What are the possible methods of submitting payroll reports?
4. Our school processes a payroll every day to accommodate employees whose checks are incorrect. Do we have to send a payroll file every day?
5. Can payroll reporting handle negative amounts, such as voided checks?
6. Can I send multiple payrolls in the same file transmitted to STRS Ohio?
7. Can I send one check for both member and employer contributions?
8. Can I send member and employer contributions via ACH or wire transfer?
9. If I send contribution payments via ACH or wire transfer, can I receive a wire transfer back for a negative payroll report?
10. I understand that payroll reporting was created so that teachers who elect the Defined Contribution Plan or the Combined Plan would have their member accounts updated on a timely basis. If none of the teachers at my school select the Defined Contribution Plan or the Combined Plan, do I still need to send payroll reporting?
11. Are member contributions credited to the member accounts immediately on receipt of a payroll report?
12. Since we are sending payroll reports, why do we need to complete the Annual Report?
13. How does STRS Ohio reconcile the contributions submitted with payroll reports to the Annual Report?
14. What are the consequences to my school if I submit my payroll report or remit my payment late?
15. Can I view information about contributions I’ve previously submitted to STRS Ohio?

1. When are payroll reports and contributions due?
   Payroll reports and contributions are due to STRS Ohio no later than five business days after the payroll date.
2. Is the five-business-days deadline calculated from the date of the payroll run or the actual pay date?
   The payroll run date is often earlier than the actual pay date. As long as the payroll information is final and not expected to change, STRS Ohio will accept payroll reports and contributions prior to the actual pay date, but the deadline is within five business days of the actual pay date.
3. What are possible methods of submitting payroll reports?
   STRS Ohio accepts payroll reports via the following electronic formats:  FTP, secure e-mail or Web data entry.
4. Our school processes a payroll every day to accommodate employees whose checks are incorrect. Do we have to send a payroll file every day?
   Payroll reports should be sent as soon as possible after each regularly scheduled payroll (biweekly, monthly, etc.). Special payrolls that affect a limited number of members can be grouped together as long as the payroll report and contributions are received at STRS Ohio no later than five business days after the first pay date included on the report.
5. Can payroll reporting handle negative amounts, such as voided checks?
   Yes. Payroll reporting file layouts accommodate negative amounts.
6. Can I send multiple payrolls in the same file transmitted to STRS Ohio?
   Multiple payrolls can be included in the same file. However, the pay date included for each record must be accurately reported.
7. Can I send one check for both member and employer contributions?
   You can send one check for both member and employer contributions. However, information in the payroll header record, or documentation accompanying the check, must clearly identify how the check should be allocated. Print a copy of the Employer Cash Receipt Remittance Form.
8. Can I send member and employer contributions via ACH or wire transfer?
   STRS Ohio encourages the use of ACH or wire transfer of contribution payments to facilitate the reconciliation of payments to payroll reports and the posting to member accounts. View or print a copy of Sending Contribution Payments via ACH or Wire Transfer.
9. If I send contribution payments via ACH or wire transfer, can I receive a wire transfer back for a negative payroll report?
   While STRS Ohio can handle negative payroll reports, we are unable to process automatic wire transfers back to employers at this time. If an employer transmits a negative payroll report, the contribution payment due with the next payroll may be adjusted by subtracting the negative amount, or STRS Ohio can issue a check to the employer.
10. I understand that payroll reporting was created so that teachers who elect the Defined Contribution Plan or the Combined Plan would have their member accounts updated on a timely basis. If none of the teachers at my school select the Defined Contribution Plan or the Combined Plan, do I still need to send payroll reporting?
    Yes. All teachers that are new STRS Ohio members have the right to elect the Defined Contribution Plan or the Combined Plan. Even if none of your existing teachers select the Defined Contribution Plan or the Combined Plan, it is likely that new STRS Ohio members will select one of these plans. By asking for payroll reporting for all teachers, STRS Ohio has eliminated the need for employers to track which plan each member chooses.
    
    
11. Are member contributions credited to the member accounts immediately on receipt of a payroll report?
    STRS Ohio checks payroll reports for certain error conditions — valid employer number, numeric fields contain numeric values, etc. Once the report is verified and payment has been remitted, contributions are credited to Defined Contribution Plan  and Combined Plan member accounts.
    
    
12. Since we are sending payroll reports, why do we need to complete the Annual Report?
    Members who remain in the Defined Benefit Plan and those who choose the Combined Plan have all or a portion of their benefits based on fiscal year earnings and service credit. To pay these benefits, STRS Ohio needs to know fiscal year earnings and service credit for each year the teacher worked, which is reported on the Annual Report. Payroll reporting is based on when teachers are paid and not necessarily when the payment is earned, so defined benefit payments to teachers cannot be calculated using payroll reports.
    
    In addition, new members who elect the Defined Contribution Plan or the Combined Plan default to the Defined Benefit Plan on their 5-year anniversary date with STRS Ohio unless they choose to stay in the Defined Contribution Plan or the Combined Plan. Members who return to the Defined Benefit Plan have their accounts “restored” as if they had always been Defined Benefit Plan participants. So the Annual Report is needed for all teachers to restore their accounts when necessary.
    
    
13. How does STRS Ohio reconcile the contributions submitted with payroll reports to the Annual Report?
    To determine that the contributions reported on the Annual Report balance to the contributions deposited with payroll reports, we use the fiscal year contribution and accrued contribution information on the Annual Report. For example, the 2007-2008 payroll report totals, minus the 2006-2007 accrued contributions, plus the 2007-2008 accrued contributions, plus/minus prior fiscal year adjustments, should equal the 2007-2008 Annual Report fiscal year contributions.
    
    
14. What are the consequences to my school if I submit my payroll report or remit my payment late?
    Your school may incur penalties (up to $2,000 per occurrence) for late contribution reporting and interest for late payment, in accordance with the State Teachers Retirement Board Rules.
    
    
15. Can I view information about contributions I’ve previously submitted to STRS Ohio?
    Yes, historical payroll contribution reports can be viewed through the Employer Reporting application on the Secure Employer Web site. You may view summaries of payroll reports you’ve submitted, or the per-teacher detail listings. You may also enter one teacher’s SSN and view all of the payroll reports you’ve submitted to STRS Ohio for that teacher.

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