You need to compare time sheets to the transmittal reports you submitted to DRS for the audit year. Compare the hours (or days) and compensation you reported to us and all the hours (or days) and compensation you paid to the employee. For each SERS employee you selected, complete the Monthly Compensation Worksheet (include two months). While you complete the worksheet, you need to enter each payment type you pay the employee in the “Compensation Paid” column. For example:

After you review the payment type list you created earlier and complete your worksheets , verify whether or not each payment type you pay your employees is reportable to DRS. Select a plan and table to conduct your review.

SERS 2 & 3

  • Reportable Table
  • Type of Payment RCW/WAC/Notice
    Base Rate WAC 415-110-451
    Cafeteria Plans WAC 415-110-455
    Deferred Wages WAC 415-110-459
    Differential Military Pay DRS Notice 08-019
    Disability: Salary lost while on disability leave RCW 41.35.070
    WAC 415-110-468
    Legislative Leave WAC 415-110-464
    Longevity/Education Attainment Pay WAC 415-110-451
    Payroll Deductions WAC 415-110-459
    Performance Bonuses WAC 415-110-453
    Retroactive Salary Increase WAC 415-110-457
    Reinstatement Payments WAC 415-110-467
    Shared Leave – School/ESD Employees WAC 415-110-468
    Standby Pay WAC 415-110-469
    Time Off with Pay WAC 415-110-456
    Union Leave¹ WAC 415-108-466
  • Not Reportable Table
  • Type of Payment RCW/WAC/Notice
    Annual Leave Cash Outs WAC 415-110-456
    Car Allowances¹ WAC 415-110-485
    Disability Payments WAC 415-110-477
    Employer Provided Vehicle WAC 415-110-480
    Fringe Benefits WAC 415-110-475
    Illegal Payments WAC 415-110-482
    Nonmoney Maintenance WAC 415-110-470
    Optional Payments WAC 415-110-483
    Payments not for Services Rendered WAC 415-110-463
    Reimbursements WAC 415-110-484
    Retirement or Termination Bonuses² RCW 41.50.730
    WAC 415-110-487
    Severance Pay – Earned Over Time WAC 415-110-458
    Severance Pay – Not Earned Over Time WAC 415-110-488
    Sick Leave Cash Outs – School/ESD Employees WAC 415-110-456
    Workers’ Compensation WAC 415-110-479

Some types of reportable compensation may qualify as excess compensation. Select the table below to verify which types of compensation qualify:

  • SERS 2 & 3 Excess Compensation
  • SERS 2 & 3 RCW/WAC Notes
    Reportable Car Allowance WAC 415-110-485 (6)  
    Payment (overtime) greater than two times the regular pay RCW 41.50.150 (2)(d) Double time and a half for a holiday is not considered excess compensation.
    Retirement or termination bonus RCW 41.50.730 (2)
    WAC 415-110-487
    If agreement requires additional service.

If a payment qualifies as excess compensation, the employer is billed for the resulting increase in the retiree's benefit to offset the increased cost to the trust funds.

If you’re looking for a payment type that’s not included in the compensation tables, contact Employer Support Services or your assigned auditor.

Quarterly reports

We require that school districts and educational service districts report hours and compensation for substitute employees on the monthly transmittal report. Use the quarterly report only when the substitute is applying for service credit that was before the 2004-05 school year. Substitute teachers employed by the School for the Deaf, School for the Blind or any Higher Education Institution must continue to submit quarterly reports.

Additional substitute detail

Classified and certified substitute employees of school districts working as subs can purchase service credit. When you report substitutes on the monthly transmittal, use the following type code:

Self Audit