STRS Ohio | STRS Ohio Update for Reporting Employers — Reporting Requirements

State Teachers Retirement System of Ohio

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STRS Ohio Update for Reporting Employers

Reporting Requirements

Posted: November 2016

Submit SSA-1945 Forms Easily via Secure File Upload

The Social Security Protection Act requires state and local government employers, hiring for jobs not covered under Social Security, to notify new hires about how public employment will affect Social Security benefits. One of the required forms that must be submitted to STRS Ohio after hiring an individual is a Statement Concerning Your Employment in a Job Not Covered by Social Security, also known as an SSA-1945 form. Employers can submit this form to STRS Ohio by scanning and uploading the form to our website via secure file upload, mail or fax. View the SSA-1945 forms upload instructions.

Understand the Process for Purchasing Service Credit Through Payroll Deduction Plans

Members may purchase service credit for certain types of service to increase retirement income or enable the member to retire sooner. Pursuant to Section 3307.70 of the Revised Code, members may make the purchase through a payroll deduction plan through their employer for some types of purchasable service credit. Employers can offer an after-tax plan, a tax-deferred plan or both. Regardless of the plan, it is important employers understand the process that must be followed when offering either plan for purchasing service credit.

After-Tax Payroll Deduction Plan
  • The member can choose the initial amount of payroll deduction as long as it is greater than or equal to the minimum amount listed on the Application to Purchase Credit Through Payroll Deduction.
  • The amount of the deduction may be changed or stopped by the member upon written notice to the employer. In the event of a change, the monthly amount deducted cannot be less than the applicable minimum.
  • If a member chooses to terminate the deduction before the entire amount of credit is purchased, the member will receive credit for the percentage of credit actually purchased. (Employment termination will also discontinue the purchase.)
  • To continue the purchase after terminating the deduction, whether voluntarily or by employment termination, a new cost statement and application are required before resuming deductions.
  • A member participating in an after-tax plan can choose to convert to a tax-deferred plan at the time of adoption by the employer. However, the member must contact STRS Ohio for a new cost statement.
Tax-Deferred Payroll Deduction Plan
  • The member can choose the initial amount of payroll deduction as long as it is greater than or equal to the minimum amount listed on the Application to Purchase Credit Through Payroll Deduction.
  • A tax-deferred payroll deduction plan is irrevocable. This means payroll deductions must continue at the agreed upon amount until the purchase is complete or employment is terminated.
  • The monthly payment amount cannot be stopped or changed, even in the event of unforeseen circumstances or financial hardship.
  • Once a tax-deferred payroll deduction plan is started, the plan cannot be converted to an after-tax plan.
  • Extra payments may not be submitted to STRS Ohio if a member is enrolled in the tax-deferred plan.
  • Overpayments on tax-deferred payroll deductions will be returned to the employer for proper tax accounting.
General Employer Responsibilities
  • The member will provide you with a copy of the Application to Purchase Credit Through Payroll Deduction. Please certify Part B of the application and return it to STRS Ohio no later than the date of the first scheduled payment.
  • If deductions are not started by the date indicated on the Application to Purchase Credit Through Payroll Deduction, the member must contact STRS Ohio for a new cost statement.
  • Payroll deduction payments are due to STRS Ohio no later than the 15th of the following month.
  • Employers must also submit the purchase service credit report at the same time as payment. This report, listing all members purchasing service credit and expected deductions, can be completed in ESS (if registered to receive it electronically) or via mail.
  • If the employer is purchasing credit for a member, the employer should send the check to STRS Ohio with a letter certifying how the money is to be treated for tax purposes. A receipt for the purchase will be issued approximately 10 business days after receiving the lump-sum payment, letter from the employer and signed cost statement.
  • Be sure to contact STRS Ohio within three months of the final payment month to confirm final payment amount.

If you have any questions about payroll deduction plans, please contact the STRS Ohio Employer Reporting Department toll-free at 888‑535‑4050 or send an email to [email protected].

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