For employers who use Employer Access Web Wage Reporting, the information is generated automatically by the Web Wage Reporting application.
All employers:
Pay all charge advices by identifying the payment as an ”Advice Payment” (Code 015) on the First Data Government Solutions Electronic Funds Transfer (EFT) pay-by-phone or pay online system.
Take credits by reducing an EFT payment by the credit amount. Employers can view their Account Balance by selecting ”Display Account Balance” from the Employer Access home page.
Below is the information you'll need to supply when reporting IMRF wages and contribution .
Report wages on a cash basis, i.e., wages paid during the month. Employers should report the gross amount of wages, including the member contribution. Tier 2 is subject to the wage cap.
The member rate for Regular members is 4.50% of wages. The current member rate for SLEP members is 7.50% of wages. The member rate for ECO members is 7.50% of wages. Do not include wages for employees who are not members of IMRF. See Section 3 for definitions of wages to be reported.
Back pay may or may not be allocated to prior periods. Refer to 3.96 U. Back Pay Other Than Illinois Labor Relations Acts.
If back pay cannot be allocated to prior periods, report the amount in the month paid.
If back pay can be allocated, report the payments for the months they are allocated to as a wage adjustment. Effective March 1, 2010, employers with Internet access must submit wage adjustments via Employer Access. Employers without Internet access may submit wage adjustments on Form 3.20, ”Employer's Report of Adjustments to IMRF Wages” (Exhibit 4E).
Certain employees are subject to wage caps pursuant to the Pension Code and IRS regulations. For all employees who began participation on or after January 1, 1996, IMRF earnings do not include any compensation in excess of the wage cap set forth in IRS Regulation 401(a)(17). Refer to Appendix A-2 of this Manual for the current wage cap information. Once an employee has reached the wage cap under 401(a)(17), employers should stop reporting the employee and making IMRF contributions for the remainder of that year.
For all Tier 2 employees, a member's wages are capped pursuant to a calculation under the Pension Code which applies to all Tier 2 employees. Refer to Appendix A-2 of this Manual for the current wage cap information. Once an employee has reached the wage cap for a given year, employers should stop deducting IMRF contributions for any wages exceeding the cap. Employers should, however, continue to report all wages paid to the employee (subject to the limitations of 401(a)(17), above).
Employer contribution rates are calculated by the actuary to amortize the unfunded pension obligation over a period of years.
For most employers, the unfunded liability is amortized over an open 30-year period. Participating instrumentalities (employers without taxing authority) generally amortize their unfunded liabilities over an open 10-year period. (See Section 7 for more information.) The employer rate includes costs for retirement, death, disability, supplemental and early retirement incentive (if applicable).
The employer may have to pay a minimum contribution each month in order to pay down the unfunded obligation. The minimum contribution amount will be displayed on the Web Wage Reporting Validation Summary.
All payments must be made via First Data Government Solutions pay-by-phone or pay online EFT system. If not, the employer will be subject to a $25 processing fee.
Employers can view Outstanding Advices by selecting ”Display Account Balance” from the Employer Access home page.
Note: Charges or credits relating to adjustments will appear on the IMRF Monthly Employer Statement in the month they were processed. Interest charges on late contributions will appear in the month in which they are issued. Payment (First Data Government Solutions Electronic Funds Transfer) for these items must be received in the following month in order to avoid additional interest charges.
The total deposit due will appear on the Wage Report Summary screen in the Payment Summary box.
Note: The monthly wage and contribution detail and summary reports and the EFT payment should be received by IMRF by the 10th day of the month following the payroll month reported. Interest will be charged on late deposits not received by the 20th. See 4.22 Interest Charges on Unpaid Contributions and Adjustments.