Elected Officials' Stipends

Procedure for reporting stipends for ALL elected officials

Every summer, IMRF employers--usually counties and townships--report their elected officials' stipends to IMRF.

Beginning in June or August 2001 (see below for effective dates), all elected official stipends will be treated as tax-deferred and will no longer need to be identified as “previously taxed” stipends when reported to IMRF.

IMRF announced this same stipend treatment on March 29, 2000, in Special Memo 261 for treasurer and assessor stipends paid in the State’s fiscal year 2000. The same procedure implemented for treasurers and assessors now applies to all elected officials’ stipends.

Effective dates depend on position for the elected official

• Circuit Court Clerks and County Clerks: Effective for stipends paid after June 1, 2001
• All other elected officials (including Coroners, Sheriffs, Recorders of Deeds, Chief of County Boards): Effective for stipends paid after August 1, 2001

How IMRF employers previously handled elected official stipends (except treasurers and assessors)

Until now, stipends for most elected positions have been treated as previously taxed rather than tax-deferred. As a result, this tax treatment required the Authorized Agent to identify these earnings as previously taxed so the contributions would not be taxed a second time when the elected official received them as a refund or a pension. If a stipend was not previously identified, IMRF could not provide the proper tax treatment.

Why change how stipends are treated?

Beginning with the effective dates listed above, the state agency will calculate income taxes on the net amount after the IMRF contribution is deducted rather than on the gross stipend amount. This new tax treatment allows for immediate Illinois and federal income tax savings to the member and avoids the possibility of double taxation of the IMRF contribution. Please note: Social Security and IMRF contributions will continue to be calculated on the gross amount.

What’s the new procedure for reporting stipends?

The new procedure eliminates the need to identify a stipend on your employer’s Form 3.20, 3.10, or 3.11 (accepted methods for stipend identification). The Authorized Agent will continue reporting the gross stipend amount and continue calculating IMRF contributions on this gross amount. These amounts will continue to be reported as a part of an employer’s total IMRF member wages and contributions. This page outlines how to report an elected official's stipend as IMRF wages.

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