Yes, contributions should be remitted on a state report card bonus. The important thing to remember is that your staff has earned this bonus as a result of work performed in the previous school year. This means the contributions are on earnings for the 2015–2016 fiscal year even though you may not be paying the bonus until the fall of the next fiscal year (2016–2017). As a result, contributions must be withheld at the 13% member contribution rate that was in effect at the time the money was earned.
STRS Ohio recommends submitting a separate payroll file listing only the contributions on the bonus. (Do not combine the amounts with regular payroll amounts for the pay period on the report submission to STRS Ohio.) The reason it is best to submit a separate file is because a backposting adjustment will also be required. The purpose of the backposting is to adjust last year’s annual report totals. If you submit a separate file for the bonus contributions and send an email to [email protected] indicating you are preparing to send the file, STRS Ohio can create the backposting file for you. However, if the bonus contributions are included with a regular bi-weekly 2016–2017 fiscal year payroll report, then you will be responsible for creating your own backposting file or entering the figures for each individual manually on ESS.
If you have additional questions, please contact your employer advisor at 888‑535‑4050 or send an email to [email protected].