Chapter 4: Reportable Compensation
PERS Reportable Compensation
Nonmonetary Maintenance for Plan 1
Employees may receive nonmoney items from employers that may be a form of payment for services rendered. "Nonmoney maintenance compensation" means the fair market value of materials legally furnished by an employer to an employee or the employee's dependents for personal use. If an employer provides materials for an employee's personal use, the value of the use is nonmoney maintenance and is reportable for PERS Plan 1 only.
Example:
Mr. Smith's employer leases an apartment for $700 per month. The employer charges Mr. Smith $300 per month to use the apartment for temporary living quarters. Because Mr. Smith uses the apartment for personal rather than business purposes, the amount by which the lease value exceeds his payment is nonmoney maintenance compensation. His employer must report $400 per month to DRS as reportable compensation.
If an employer provides an employee materials instead of reimbursement for a business expense, the value of the materials is not reportable compensation.
Note: Nonmoney maintenance compensation is not reportable for PERS Plan 2 or Plan 3.