Report type NLEC Non-LEOFF Employer Compensation is intended to be used by LEOFF employers to report total compensation
for an earning period associated with LEOFF services provided to non-LEOFF employers. NLEC does NOT replace any otherwise required
transmittal reporting by the LEOFF employer, but rather it allows the employer to tell DRS the portion of the total reported basic
salary for its LEOFF Plan 2 members that was associated with NLEC services.
Is the NLEC Compensation I report supposed to be based on the basic salary earned for NLEC services, or equal to the amount of the fee received from the non-LEOFF employer?
The NLEC Compensation you are responsible for reporting is the portion of the total LEOFF Plan 2 basic salary associated with NLEC
services. The amount of the fee has nothing to do with the amount you report.
The fees we receive from the non-LEOFF employer are not directly allocated to our LEOFF Plan 2 members’ salaries. Do we still have the pay the state rate?
Yes. If you receive a fee for services rendered by your LEOFF Plan 2 member(s) to a non-LEOFF employer, you are responsible for reporting
the portion of the total LEOFF Plan 2 basic salary associated with NLEC services, and for paying the state contributions owed on
For which periods are we required to report NLEC?
You are responsible for reporting NLEC earned from July 1, 2017, forward.
Should the compensation be reported as earned?
Yes. All gross NLEC should be reported as earned by payroll period. If you have payroll periods that span more than one month, and
there was NLEC earned in both months, you would create separate earning periods for each month.
How often should I report NLEC?
You should report NLEC after your regular transmittal has processed for the earning period containing NLEC. This timing will ensure
the receivables associated with both the transmittal and the NLEC reports will post to the same reporting period for the employer.
Example: The LEOFF employer submits a transmittal for the December 2017 earning period on Jan. 10, 2018. The transmittal report will process on Jan. 11, 2018. The employer then submits the NLEC report on Jan. 11, 2018. The employer’s receivables for both the transmittal report and the NLEC report will post to the December 2017 reporting period.
What if we don’t have NLEC for a period, or don’t have it at all?
You are not required to submit an NLEC report unless you have NLEC services associated with an earning period.
I submitted an incorrect amount on a previous report. Can I correct it?
Yes. You can adjust any prior earning period by adding a line to your report. You can reverse previously reported NLEC, but only up
to the amount you originally reported.