Monthly wage reporting is one of the most important steps you take to keep member records accurate and to make sure retirement benefits are calculated correctly down the road. The key is knowing what counts as salary for LAGERS purposes and reporting it in the month it’s paid, not the month it was earned.
Before you submit your wage report, ask:
- Is this payment part of the employee’s regular compensation?
- Was it paid this month (even if earned earlier)?
- Is it recurring or one-time?
Below is a guide you can use each month to help you answer those questions.
What Is Reported to LAGERS?
In general, report gross wages and other forms of recurring compensation that function like wages.
- Report gross wages, including overtime, recurring bonuses, and paid time off (vacation, sick leave, compensatory time, etc.) Wages should be reported to LAGERS for the month paid, not the month earned.
- Report lump sum payments only if they have been paid in the past or will be paid in more than one reporting month, not payroll period. E.g. If an annual leave cash out is paid monthly, quarterly or annually, it may be reportable as a recurring lump sum payment.
- Report any fees that are considered salary.
- Report employee payments made to a deferred compensation plan.
- Report regular, recurring allowances paid to an employee.
What is Not Reported to LAGERS?
Some payments may show up on payroll, but they are not reportable salary for LAGERS. Do not report:
- Employer payments for insurance premiums
- Reimbursements for expenses incurred by an employee
- One-time lump sum payments
- Salary or benefits paid for any month the employee was on, worker’s compensation, military leave, educational leave
- Short-term disability payments, whether administered by the employer or a third party
If you’re unsure whether a certain type of compensation is reportable, please contact your employer services specialist. A quick check now can prevent corrections later and keeps your reporting clean and consistent.
