The salary information you provide us each month determines your employees’ final average salaries (one of the factors we use to calculate their retirement benefits). It also determines your annual contribution to the Retirement System.
But determining what payments should be included on your monthly report can be confusing. So exactly which payments are reportable? An easy definition would be "payment for services rendered." This includes normal salary, overtime and lump sum recurring payments such as longevity bonuses, merit pay and holiday pay.
Not all items considered taxable by the Internal Revenue Service constitute salary as defined by the Retirement & Social Security Law. These payments should not be included on your monthly report and will be excluded from the retirement calculation if reported. Then there’s the question what salary to report for employees who have cafeteria plans or take advantage of deferred compensation.
Our Salary Summary lists some common payments that you should include on the monthly report, including lump sum recurring payments, and some that you shouldn’t. If you ever have a question about whether or not to include a payment, contact our Member & Employer Services Bureau.