Annual Reporting

1. What is the Annual Report?
2. Why do employers need to submit both payroll reports and an Annual Report?
3. When is the Annual Report due?
4. What information is included in the Annual Report?
5. What is the current member contribution rate on compensation?
6. How do I calculate total contributions for each member?
7. What are accrued contributions?
8. How do I calculate accrued contributions?
9. Should accrued contributions be included in the total contributions for each member?
10. What is the difference between regular (taxed) and picked-up (tax-deferred) contributions?
11. How do I calculate service credit?
12. Can I include contributions on earnings without including service credit?
13. Can I report negative contribution amounts for a member?
14. Can I report a prior fiscal year adjustment in the Annual Report?
15. Can I include adjustments resulting from a grievance or settlement in the Annual Report?
16. What are the possible formats for submitting the Annual Report?
17. How do I change the format I use to submit my Annual Report?
18. How do I submit my Recap Sheet?
19. What should I do if I can’t find my Recap Sheet?
20. I just discovered that my Annual Report is incorrect. How do I make corrections?
21. Should I keep a copy of my Annual Report?
22. Will I receive confirmation of the amounts reported in the Annual Report?
23. Why am I asked to verify service credit after I submit the Annual Report?
24. Who do I call for help?

1. What is the Annual Report?
   The Annual Report is a listing of all contributions on compensation earned by active members and reemployed retirees during the fiscal year and service credit.
2. Why do employers need to submit both payroll reports and an Annual Report?
   For STRS Ohio to properly pay benefits for all members, we need to know the amount of compensation and service credit each member earns during the fiscal year. All employers are required to submit payroll reports and contributions after each pay period. Some employers may think that payroll reports give us all the information we need to properly pay benefits for members. However, payroll report information is only based on paid compensation during the pay period.
   
   Annual Reports are necessary to give us the extra information we need. After we receive your Annual Report, we compare the total member contributions to fiscal year payroll reports and accrued contributions to ensure that contributions reported in your Annual Report agree with your payroll reports.
3. When is the Annual Report due?
   Each year the Annual Report is due at STRS Ohio by the second Friday in August. In June employers will receive specific instructions for completing their report based on the submission method they use. No extensions will be granted to the deadline. Employers are asked to anticipate and address issues that could cause problems, such as changing payroll systems or the absence of key personnel.
4. What information is included in the Annual Report?
   The Annual Report must include the following information about each member:
   
   • Name
   • Social Security number
   • Member type (active member or reemployed retiree)
   • Regular (taxed) contributions
   • Picked up (tax-deferred) contributions
   • Service Credit
   • Accrued contributions
5. What is the current member contribution rate on compensation?
   The current member contribution rate is 10% of earned compensation. This means that all contributions — regular (taxed), pickup (tax-deferred) and accrued — should be reported at the 10% rate.
6. How do I calculate total contributions for each member?
   To calculate total contributions for each member, multiply the total amount of compensation earned during the fiscal year by 10%.
   
   Example: A teacher with a nine-month contract is paid $42,000 over 12 months for work performed September through June. Total contributions due to STRS Ohio are $4,200 ($42,000 x 10% = $4,200).
7. What are accrued contributions?
   Accrued contributions are contributions on compensation that is earned by June 30 of the fiscal year but not paid until after July 1.
8. How do I calculate accrued contributions?
   To calculate accrued contributions, determine the amount of compensation that was earned by June 30 but not paid until after July 1. Then multiple this amount by 10%.
   
   Example: A teacher has a contract for $45,000 for nine months of work from September to June. Her work is completed by mid-June, but she is paid over 12 months. By the end of June, she has been paid $37,500, and the remaining $7,500 will be paid to her during July and August. Total accrued contributions for this teacher are $750 ($7,500 x 10% = $750).
9. Should accrued contributions be included in the total contributions for each member?
   Yes. Accrued contributions are part of the total contributions for each member. They are also listed separately to allow STRS Ohio to balance annual report figures to payrolls during the fiscal year.
10. What is the difference between regular (taxed) and picked-up (tax-deferred) contributions?
    Whether or not your district has adopted an employer pickup plan will determine if contributions should be reported as regular (taxed) or pickup (tax-deferred). If you have adopted a pickup plan, member contributions must be reported as pickup. If you have not adopted a pickup plan, member contributions must be reported as regular.
    
    Before you submit your report, verify that contributions are accurately reported as regular or pickup for each member. In certain circumstances, it is possible for a member to have both regular and picked-up contributions reported.
    
    Example: Your school has adopted an employer pickup plan. A teacher with a nine-month contract is granted a leave of absence midway through the school year and submits member contributions to STRS Ohio via personal check during the leave. In this case, the contributions submitted by your school should be reported as pickup and contributions personally submitted by the teacher should be reported as regular.
    
    
11. How do I calculate service credit?
    You can use the online calculator on the STRS Ohio Employer Web Site to calculate service credit.
    
    You should refer to the State Teachers Retirement Board Rule 3307:1-2-01. The service credit earned for a full year should be reported as 1.00 for full credit. For partial credit, it should be reported as a percentage of full credit (e.g., 0.27, 0.62, 0.75). For members on sabbatical or a partially paid leave, the compensation paid divided by annual contract should be used to determine the service credit earned.
    
    Example: $20,000 paid ÷ $50,000 contract = .40 of a year of service credit.
    
    You must report service credit for each active member. Although reemployed retirees do not earn service credit, you must still report service credit as zero for reemployed retirees — do not leave this field blank.
    
    
12. Can I include contributions on earnings without including service credit?
    No. Service credit must be reported for each active member if contributions are greater than zero. Although reemployed retirees do not earn service credit, you must still report service credit as zero (do not leave this field blank).
    
    
13. Can I report negative contribution amounts for a member?
    No. Negative contribution amounts or adjustments for a prior fiscal year cannot be included in the Annual Report. If an employee did not earn compensation during the fiscal year, report contributions as zero. If an employee worked a portion of the year before discontinuing employment, report contributions on compensation earned while he or she was employed.
    
    
14. Can I report a prior fiscal year adjustment in the Annual Report?
    No. The Annual Report is based on compensation earned during the fiscal year, not paid during the fiscal year. When payments or adjustments are made to an employee for work performed in a prior fiscal year, you must notify STRS Ohio if the amount was not included in the prior fiscal year’s Annual Report. Click here for more information about prior fiscal year adjustments.
    
    
15. Can I include adjustments resulting from a grievance or settlement in the Annual Report?
    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 STRS Ohio.
    
    
16. What are the possible formats for submitting the Annual Report?
    STRS Ohio accepts the Annual Report via electronic transfer (FTP), magnetic or cartridge tape, or online report using the employer Web site.
    
    
17. How do I change the format I use to submit my Annual Report?
    To change the format of your Annual Report, call STRS Ohio toll-free at 1-888-535-4050, fax a letter to (614) 227-2912, or send an e-mail to Employer Reporting.
    
    
18. How do I submit my Recap Sheet?
    You can submit your Recap Sheet online through the Employer Account Information area of the STRS Ohio Employer Web Site. If you do not use the Web site, you can complete the Recap Sheet that is included in your annual reporting instruction packet and mail it to: STRS Ohio, Attn: Employer Reporting, 275 E. Broad St., Columbus, OH 43215-3771.
    
    
19. What should I do if I can’t find my Recap Sheet?
    Call STRS Ohio toll-free at 1-888-535-4050 to obtain a copy of your personalized Recap Sheet. You can also complete and submit your Recap Sheet online using the STRS Ohio Employer Web Site.
    
    
20. I just discovered that my Annual Report is incorrect. How do I make corrections?
    The answer is based on whether or not you have submitted your report.
    
    If you have not submitted your report:
    
    Check to see if the problem can be corrected through your payroll system or DA-site.
    
    If the problem can be corrected, correct your Annual Report as needed before submitting it to STRS Ohio.
    
    If the problem cannot be corrected, attach a memo to your Recap Sheet explaining the corrections for each member affected. All corrections must include:
    
    – Member name and Social Security number;
    – Contribution amounts reported in your Annual Report (total and accrued);
    – Corrected contribution amount and difference;
    – Service credit reported in your Annual Report (if applicable); and
    – Corrected service credit (if applicable).
    
    If you have submitted your report:
    
    You can submit corrections via letter or e-mail. All corrections must include:
    
    – Member name and Social Security number;
    – Contribution amounts reported in your Annual Report (total and accrued);
    – Corrected contribution amount and difference;
    – Service credit reported in your Annual Report (if applicable); and
    – Corrected service credit (if applicable).
    
    STRS Ohio can provide a list of current contributions and service credit upon request.
    
    Corrections processed outside of payroll require additional contributions. These corrections cannot be processed until STRS Ohio receives the contributions. Contributions for a prior fiscal year may be assessed interest.
    
    If your entire report is incorrect, please contact STRS Ohio regarding resubmission.
    
    When in doubt, call your employer advisor toll-free at 1-888-535-4050.
    
    
21. Should I keep a copy of my Annual Report?
    Yes. In the event STRS Ohio does not receive your report or technical problems arise, you will be asked to send us another copy.
    
    
22. Will I receive confirmation of the amounts reported in the Annual Report?
    Yes. STRS Ohio will send employers an Employer Detail Listing report that includes all members and contributions reported, including any changes that were requested. These reports are usually mailed in November and December each year.
    
    
23. Why am I asked to verify service credit after I submit the Annual Report?
    Occasionally service credit reported in the Annual Report appears inconsistent with contributions reported for members when compared to the prior fiscal year or the state minimum salary. When this occurs, STRS Ohio asks you to verify service credit by providing us with the number of days, hours or full-time equivalent by quarter or semester for each member listed. By completing this report, you will eliminate requests for service credit verification when members retire.
    
    
24. Who do I call for help?
    If you have general problems or questions regarding any part of the annual reporting process, call your employer advisor toll-free at 1-888-535-4050. Working hours are Monday through Friday, 8 a.m.–5 p.m.
    
    If you experience technical problems or have questions regarding submission procedures, call the STRS Ohio Service Desk at (614) 227-8633. Working hours are Monday through Friday, 8 a.m.–5 p.m. If you receive voice mail, please leave a message and an STRS Ohio representative will return your call no later than the next business day.

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