This section will outline the requirements and procedures for education contract payouts and partial file uploads.
- A default of 174 hours is acceptable only for full-time contract or full-time exempt employees.
- For all other full-time or part-time employees, actual hours worked must be reported.
- Zero (0) hours must be reported for the months the employee did not actually work.
Partial File Uploads & Paying Out Contract Employees in Advance
Often contract employees of the educational group are paid monthly during the school year and then receive the balance of their contract in a lump sum, which represents their pay for the summer months. WRS refers to this practice as “paying in advance.” WRS would prefer contributions to be paid out monthly throughout an employee’s contract, but will accommodate those education employers who prefer to pay summer salary in advance. An employer can pay its contract employees in advance by submitting a separate partial file to WRS for each of the months that are being paid in advance. Only those employees who are being paid in advance should be listed on the file upload. Uploading a partial file for any other purpose will create problems with future uploads and/or for your employees when they retire or refund their account.
Depending on your payroll system, when you process your normal payrolls for the summer months, those employees who have already been paid in advance will be highlighted in yellow on the Contribution Template. You may leave them on the file or delete them.
WRS cannot accept a single lump sum payment that represents more than one month of pay, regardless of whether the payment is for summer months or for a contract payout mid-year. This applies to any contracted employee, not just teachers.
Summer School and Extra-Duty Contracts
Please do not submit contributions in advance for an employee who will be working summer school or has an extra-duty contract for the summer months. Doing so will require you to create a separate adjustment file for the additional summer salary and contributions. The adjustment file can’t be uploaded until the original file for that month has been uploaded and the payment processed by WRS.
The Contribution Template must be completed properly to ensure future benefits are calculated correctly, which requires special attention to the columns listed below.
Column L - Reportable Salary is the total retirement-eligible monthly salary for the employee, which must include the contracted employee’s normal monthly salary along with any other monthly retirement-eligible salary for extra duty pay (e.g. overtime, coaching).
Column M (required) - Educator Contract Length - Choose from the column drop-down the number of months the employee’s contract will be paid over, not the number of days/months they actually work during the school year. The contract length should not change from month to month, it must be consistent.
- 12 month contract means the employee’s contract will be paid in 12 equal installments.
- 9, 10, or 11 month contract - the employee’s contract will be paid in equal installments for either 9, 10, or 11 months. The remaining months of the year they will be placed on a “service break” or terminated, whichever is applicable for the specific employee.
- N/A should be used if -
- the employee is not a contract employee; OR
- the employee is contracted only for part of the school year, and their actual salary will be paid during the month earned
Column N - Educator Contract Salary is the amount of the salary reported in Column L that is attributed to the MONTHLY contracted salary earned by the employee; it does not include extra duty pay (e.g. overtime, coaching). It’s the yearly contract amount divided by the number of months the contract is paid over. If the employee is not a contract employee, this column should be left blank.
For an employee who actually works 12 months, there is no difference in the way an employer prepares its contribution file upload. If the employee works nine (9) months during the school year but is paid over 12 months, zero (0) hours must be reported for the months the employee did not actually work.
The following examples are based on an employee with a contract salary of $50,000 who was contracted to work nine (9) months during the school year (Sept-May), but is paid in 12 monthly installments of $4,166.67.
- Example 1 shows how an employer would report contributions for an employee who was paid monthly from September through May, and then paid a lump sum payment, in advance, for June, July, and August.
- Example 2 shows how an employer would report contributions for a nine (9) month contract employee paid over 12 months, who terminates employment before the end of their contract.
Example 1: Employee is paid monthly September through May, then will be paid in advance the remainder of their contract for June-August in a lump sum ($4,166.67 * 3 = $12,500.01). Once you have uploaded May’s payroll with all of your employees, you can upload a separate PARTIAL upload for each month representing June, July, and August with only those employees who will be paid in advance. Please upload only one PARTIAL file for each of the summer months. Uploading more than one PARTIAL file per month may result in errors in subsequent file uploads.
* This example shows the Employee Contribution paid by the Employer, but you will complete the applicable columns based on your payroll requirements. Termination Record If the employee terminates, this example also shows how to complete the term on the same partial file upload.
Example 2*: Employee was contracted to work nine (9) months, paid over 12 months, but terminates employment in January before the end of the contract. Based on the actual number of days already worked, an additional payment is due to the employee. Even though you may pay your employee in a lump sum, it must be reported to WRS monthly based on the employee’s normal payment schedule. This employee normally received $4,166.67 per month, so the normal salary would be reported for January. If the additional amount owed was $9,386.45 based on the number of actual days worked, then the additional amount would be reported as follows.
*This example shows the Employee Contribution paid by the Employer, but you will complete the applicable columns based on your payroll requirements.
Termination Record If the employee terminates, this example also shows how to complete the term on the same partial file upload.