The Importance of Correct Pay Types

by Valerie Melton, Employer Relations

When completing online contribution reporting, whether it be web-based or file upload, it is important to use the correct pay types when reporting contributions. Understanding and applying the correct pay type helps the ASRS not only identify what compensation should and shouldn’t be included in the calculation of an employee’s pension benefit, but it also reduces the delay in processing that can result from having to get clarification from the employer.

On the Ending Payroll Verification (EPV) for retirement, we ask employers to detail "Other Compensation" for which contributions were submitted to the ASRS over the past 5 years for the member. There are times we may have questions regarding those payments reported on an EPV. If we are able to make a determination from the correct pay type listed, we can avoid needing to contact the employer to determine what a particular contribution may be for. This ensures accuracy and saves time in processing. To help you become familiar with pay types, we have a PDF that defines ASRS Pay Types and you can visit the Contribution Reporting webpage.  You can also find the ASRS Compensation Quick Reference Guide on that page as well. This reference guide details what is and isn’t reportable compensation based on a member’s enrollment date.

If you need assistance with mapping special compensation to the correct pay type, please submit a secure message through your employer account with a list of the compensation you have questions about and a brief description of what the payment is for. The Employer Relations Team can help you determine which of the 9 pay types would apply.

Another online tool that can help employees and employers determine the amount of contributions that would be required for each pay period for active employees who meet membership criteria is the Calculate Your ASRS Contribution page.  Employers can use the tool to identify the type of pay and verify the correct amount of contribution to be taken out of the employee's pay each pay period to match and submit to the ASRS.

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