2023 Deferred Compensation Limits

The Internal Revenue Service (IRS) increased the 2023 Deferred Compensation contribution limits.  Keep limits in mind when processing payroll: Remember, employees can enroll, update, or cancel their Deferred Compensation contributions at any time throughout the year through Member Self Service (MSS). Annual limit for 2023: $22,500 Age 50+ limit for 2023: $30,000 Regular 3 Year Catchup: $45,000 (must be within three years prior to the year in which you retire)

NEW* Access the Audit Confirmation Report

You can now access the Retirement Contributions - Audit Confirmation directly through your Employer Self Service (ESS).  Simply click on Other Reports in the Report & Resouces tile. On the next screen, choose the Retirement Contributions - Audit Confirmation option to download the report.

This is a sample of the Retirement Contribution - Audit Confirmation report:

Payroll Reminders

Verify Contribution Rates in Employer Self Service

Take the time to verify the contribution rates for each of your retirement plans display accurately on Employer Self Service. This information impacts W2 tax forms. 

It takes 3 quick steps:

1. Select Organization Profile on ESS
2. Click on your organization's Retirement Plan
3. Verify the contribution rates and categories in the retirement rate grid

FOUND AN ERROR? Complete the Employer Payment Election (SFN 52799) and return it to NDPERS.

Report Eligible Contributions to NDPERS

When reporting wages to NDPERS, remember that not all earned wages are eligible contributions toward your employees’ future retirement benefit.

Click here to review the 9 best reporting practices and use these list to determine what wages are eligible retirement contributions.

Prepare W-2 Tax Forms

Include NDPERS retirement plans, health insurance, and 457 Deferred Compensation contributions in your employees W-2 Wage and Tax Statements.

Reference this breakdown when filing W-2 statements:

1. Health Insurance Premiums Use “Code DD” in box 12a through 12d to report both the employer and employee contributions to health insurance for the year.

2. Retirement Plan Contributions Participation in the NDPERS retirement plan means contributions are considered mandatory (vs elective). As such, the W-2 should have box 13 marked as retirement plan. The amount contributed/code is not required to be reported in box 12. Pretax contributions listed in box 1 should be less than the amount withheld in boxes 3 and 5.

3. Deferred Compensation Plan Use "Code G" in box 12a through 12d. Report the total contribution amount in box 12.