Use the contribution rate table with the effective date of Oct. 1, 2021, for DTL2 records with an end date on or after 10/01/2021.
You’ll find the contribution rate tables for FY 2021-22 (published in April 2021) on the Employer Information website under Reporting Resources, Contribution Rates. Be sure to use the correct table, depending on the type of reporting unit:
For a description of each of the elements of the contribution rates, please see Employer Contribution Rates: Terms, Definitions and Descriptions, found on the Contribution Rates page as well.
When you first report employees who are new to the Michigan Public School Employees’ Retirement System (MPSERS), your download detail report may show these employees as being in the Pension Plus with the 3% healthcare benefit structure. It will also show that the IRS limit has been reached. (Column AZ, the IRS Limit Reach column, will say “Yes”.)
If you see this on your download detail, once your payroll report has been accepted and the DTL1 record posts to create the member account, the member benefit structure will update to Pension Plus 2 with the Personal Healthcare Fund (PHF), and the IRS limit column (Column AZ) will change to “No.”
ORS has worked for several years with eligible reporting units and the IRS regarding the federal income and FICA tax implications related to the 3% retiree healthcare contributions. Reporting units that reported, deducted, and remitted these and paid taxes on them may be eligible for a tax refund.
In late 2020, we informed you that the IRS agreed to conclude the matter in a Closing Agreement based on the IRS ruling that the retiree healthcare contributions are exempt from federal income and FICA taxes.
ORS then requested that any eligible reporting unit seeking a tax refund should submit IRS Form 2048 (Power of Attorney). We then coordinated with MPSERS to make payments on behalf of each reporting unit as an administrative expense for each Reporting Unit that elected to be part of the closing agreement.
The IRS has reviewed and approved all the Form 2848 (Power of Attorney) documents for the participating reporting units.
ORS has submitted the payment on behalf of the reporting units and ORS hopes to have the final Closing Agreement from the IRS soon. ORS will distribute the final Closing Agreement to all participating reporting units as soon as we receive it.
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Each year, the Reporting Authorization Certification (RAC) is sent to all reporting units near the beginning of the school year. This form includes the contacts and users for your reporting unit as they are listed on your Employer Reporting website home page, in the box called Your Contacts. It is critical that each reporting unit review this information to make sure the list is correct and up to date, and to make sure the staff at your school have the proper user access to load and process payroll reports and process payments.
Having current contact information is also important to ensure that ORS is contacting the correct staff when communicating with reporting units about things like changes in retirement law, reporting and payment issues, and programming updates.
Our RAC form has been newly updated this year. Superintendents or chief administrators (ADM1) should receive this form in early October. If there is a change to the authorized individuals we have listed, please update the designated area on the form with the new information. We will then update our system with the changes. Please return the completed and signed form to Employer Reporting at ORS-Contract-Review@michigan.gov, no later than Oct. 31, 2021.
Changes needed now or anytime throughout the year must be made by the Web Administrator on the Employer Reporting website. To make changes to the Web Administrator or Payment Processor access, complete the necessary Web Administrator Authorization (R0687C) form and/or the Payment Processor Authorization (R0842C) form, depending on which roles need to be updated. Refer to the Reporting Instruction Manual, Chapter 12: Managing Web User Accounts for more information.
Beginning this November, all payroll staff who use the Employer Reporting website will begin using MILogin, the state of Michigan single sign-on standard for ORS applications, to access the reporting website. This change will increase security for the reporting website by using multi-factor authentication (MFA).
When you click Login on the ORS reporting website, the MILogin screen will appear. You’ll enter your User ID and password on the MILogin and complete the MFA process. After passing the MFA, the ORS reporting website will appear and you’ll use your existing ORS reporting website credentials to get into the reporting website. All existing user IDs will be migrated to MILogin automatically. Once you are logged in, the reporting website will look and function the same as it does now. Usability will not be affected.
We will provide training materials and update the relevant RIM sections soon.
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