MPSERS Employer News - March 2019

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MPSERS Employer News

March 2019

DTL4 records for terminated employees

DTL4 record for terminated employees

Your reporting unit is required to notify Voya when an employee with a DC benefit terminates. That’s anyone with Defined Contribution, Pension Plus, Pension Plus 2, and/or Personal Healthcare Fund. You do this with a Detail 4 (DTL4) record.

First be sure that all wages and contributions have been reported. Then submit another DTL4 record that shows the Status Change Date (the date the employee terminated) and Status Change Reason Code (02 – Terminated/Separated). This record should not show any reported wages or contributions.

When this record is posted, the information will be relayed to Voya with the next ORS feed. If you fail to submit this DTL4 record, the employee will not receive fund distributions from their Voya accounts. Please refer to the Reporting Instruction Manual 7.21.07: DTL4 for Terminated DC/PHF Participant for instructions. 


Keep contact information updated

Contacts screenshot

Because ORS communicates to the reporting units through the Contacts and Users listed for each reporting unit under the Work with Contacts link, it is important to keep contacts up to date along with their contact information. The Web Administrator (WA) for the reporting unit is responsible for keeping contacts and user information up to date. Only the WA has the security and access required to make changes to current accounts, delete outdated accounts, and activate new accounts.

Other Contacts that have no access to the web reporting or payment process still need to be kept updated on reporting unit concerns. Users have access to submit reports, work on reports, and/or make payments to ORS. Instructions for keeping the contacts and user information up to date are available in the RIM: 12.00: Managing Web User Accounts


Weekly Workers' Comp

Update to RIM articles on Workers' Comp

What was updated?

3.02.03 If employees are on workers’ compensation and also being paid for working at temporary jobs, it is important to know that the wages and hours earned for work performed while receiving workers’ compensation are not reportable compensation.

4.04.16 Occasionally, a reporting unit will have employees on workers’ compensation who also work at temporary jobs. Wages and hours earned for actual work performed while receiving workers’ compensation are not reportable compensation. Do not report these wages or hours to ORS; submit only the workers’ compensation information.

7.13.00 (Added examples for) WWC Special Circumstances
How to report compensation when employee works while receiving WWC

Why the update?

Occasionally, a reporting unit will have employees on workers’ compensation who also work at temporary jobs. In the past, wages earned for work performed while at the same time receiving WWC were not reportable compensation.

When an employee earns remuneration (wages) on account of service (hours) performed as a public school employee, such remuneration is reportable as “compensation” under the Retirement Act. The Retirement Act specifies that “compensation” includes “[r]emuneration earned for all services performed as a public school employee including … weekly worker's disability compensation payments received for personal injury in the employ of and while employed by a reporting unit.”

In situations involving employees who are absent from work yet receiving weekly worker’s compensation payments, the employee is entitled to full service credit hours that they would have worked had their injury never occurred.

Retirement laws and associated regulations limit service credit (hours) that can be earned during a given period. These regulations provide for “full” service to be tallied based on a 6-hour workday (or 30-hour workweek). Service rendered in excess of these periodic thresholds are not counted. “Compensation,” on the other hand, is not similarly capped. Except as otherwise excluded by the retirement regulations, all payments made on account of services performed as a public school employee are considered reportable.

How does this affect me?

If you don’t have employees earning wages for service performed while at the same time receiving WWC wages, it doesn’t affect you.

If you do have employees earning wages for work performed while at the same time receiving WWC wages, it’s important to be sure their full wages and hours earned are reported.

Please report all wages under the correct class code. Report the actual wages and hours for the work performed at a temporary job under the appropriate class code for that position. The actual wage paid for WWC should be reported in full under class code ‘8000’ regardless of who makes the payment (3rd party, Reporting Unit, check signed over to Reporting Unit by employee, etc.). Also, the hours reported with the WWC class code of ‘8000’ should reflect the total hours the employee would have worked if the injury had not occurred (full time or part time).

Example 1: employee who works 80 hours per pay period (full time)

Type of wage Class code Amount Hours
for work performed at a temporary job Regular class code $300 (actual amount earned) 24* (actual hours earned)
WWC 8000 $743 (set by law) 80*
*Note: due to service credit caps, this employee will be credited with 60 hours of service per bi-weekly pay period.

Example 2: employee who works 20 hours per pay period (part time)

Type of wage Class code Amount Hours
for work performed at a temporary job Regular class code $50 (actual amount earned) 5 (actual hours earned)
WWC 8000 $160 (set by law) 20

ORS will present at MSBO

ORS will present at the 2019 Michigan School Business Officials (MSBO) Annual Conference in Grand Rapids, Michigan. Join us if you can.        

  • ORS Processors’ Workshop on Tuesday, April 30, 2019 from 1:00 p.m. to 4:15 p.m.
  • ORS Retirement Plans and Updates on Thursday, May 2, 2019 from 8:30 a.m. to 9:30 a.m.

 

In This Issue:


April 2019

Important Dates & Reminders

March 31
Scheduled system maintenance (website unavailable until 1 p.m.)

April 15
UAAL invoices available on the Employer Reporting website.

April 28
Scheduled system maintenance (website unavailable until 1 p.m.)


Recent RIM updates

Recent RIM updates

3.02.03: Workers' Compensation

4.04.16: Workers' Compensation (Wage Code 01) 

7.13.00: How to Report Workers' Compensation on a DTL2 Record.

 


Helpful Tip

Helpful Tip

To avoid late fees and interest, make sure to look at the Pay Cycle Statement screen on day 7 of the pay cycle for the total contributions due. If payment was made prior to day 7, checking the screen will verify if payment was made in full. Immediately pay any balance due to avoid fees and interest.

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