What Every Employer Should Know

Factors Affecting an Employer’s Annual Payment

What Every Employer Should Know

  • Number of Employees Who Are Members
    Generally, the more members there are on an employer’s payroll, the higher the employer’s annual payment is likely to be. The total number of billable (active) members as of fiscal year ended March 31, 2021 was 501,890.
  • Higher Salaries
    Employer rates are billed as a percentage of covered payroll. Higher salaries will increase an employer’s total bill.
  • Retirement Plans and Options Offered
    Generally, choosing to offer your employees better retirement plans or benefit options results in a higher annual cost. Employers can also choose to offer improved retirement plans or optional benefits (for example, a one-year final average earnings for police officers and/or firefighters) to their employees. For example, if an employer chooses to provide a special plan for a specific employee group such as police officers or firefighters, the cost will be higher than a regular plan. A special plan allows for retirement after completing a specific number of years of credited service in specific job titles rather than attaining a certain age.

 


Bar Graph Comparing the Growth in Total Salaries
Description of Growth in Total Salaries (2012–2021) bar graph

This graph shows that, from 2012 through 2021, total billable salaries rose from $27.5 billion to $31.9 billion.

 


Rev. 1/22