Chapter 16: Reporting Substitutes
In this section
This chapter provides information about what you might encounter when reporting substitutes or ineligible employees working for School Districts and Educational Service Districts (ESD) to DRS. This also applies to part-time employees who don’t meet the full-time definition.
Employer responsibilities
Employers are responsible for understanding the steps required to report substitutes and ineligible employees accurately.
Definition of a substitute
A substitute is defined as “a classified or certificated employee who is employed as a substitute for an absent employee or is working in an ineligible position” for a school district or an Educational Service District (ESD).
Determining position eligibility
If the member’s enrollment date is within the last two years, use ERA Member Management/determine member eligibility to determine retirement eligibility; or you can use the Position Eligibility Worksheet, if you prefer.
good to know:
When you hire a substitute teacher, you must use the substitute status codes.
Reporting substitutes overview
School district and educational service district-covered employers will be required to report hours and compensation for substitute employees on their monthly transmittal report. Refer to “Reporting substitutes on the transmittal report.”
A substitute employee includes substitute SERS employees working for any school district or educational service district, and a substitute teacher working for any of the following TRS employers: school districts, educational service districts, community or technical colleges, the School for the Deaf or the School for the Blind.
A substitute is defined in WAC 415-110-010 as “any classified employee who is employed as a substitute for an absent employee or working in an ineligible position.”
A substitute is defined in RCW 41.32.010 as follows:
- A teacher who is hired by an employer to work as a temporary teacher, except for teachers who are annual contract employees of an employer and are guaranteed a minimum number of hours, or
- Teachers who either work in ineligible positions for more than one employer or work in an ineligible position or positions together with an eligible position
The term “ineligible position” is used in SERS Plans 2 and 3 and TRS Plans 2 and 3 law but not in TRS Plan 1 law. An ineligible position for Plans 2 and 3 is any position that normally requires fewer than five months of 70 or more hours of compensated employment during the school year (Sept. 1 – Aug. 31).
You can find the complete membership in rules in Chapter 2.
Reporting substitutes on the transmittal report
What system and plan?
The charts must be used in the order listed. When determining type codes, retirees take precedence over all types of reporting.
- Retiree Return-to-Work Reporting Charts in Chapter 17 if the individual is a retiree.
- Substitute reporting chart – Use this chart to determine how to report an employee working in an ineligible position or as a substitute (not retirees).
- Substitute teachers working in higher education, the School for the Deaf or the School for the Blind are not reported on the transmittal. The employer should provide the substitute with a quarterly report.
Reporting considerations for substitutes
- Begin and end dates: Report the first day that the substitute works as their begin date. Do not report the first day of the month or the start of the school year unless it is the first day they work for you as a substitute. Report the last day a substitute works as their end date. Do not report the last day of the month or the end of the school year unless that is the last day they work for you as a substitute.
- Status changes: If an employee transitions from substitute status to active/eligible member status, report an end date as indicated above for their substitute service and a new begin date for their active/eligible service; however, report all earnings for the month under the active/eligible type code. Follow these same procedures if the employee transitions from active/eligible member status to substitute status.
- SERS and TRS Plan 2 and Plan 3: If an employee is working for you in an ineligible position, they are not required to be a SERS or TRS member, but they must be reported on the transmittal beginning with the 2004-2005 school year using the substitute reporting codes. Refer to the Substitute Reporting Chart.
The six most common reporting errors
These are the most common reporting problems school districts and educational service district employers encounter when reporting substitutes:
Wrong type code
There are new type codes for reporting substitutes. The most common problem that employers are encountering is using the wrong type code when reporting a substitute. DRS provides a chart for determining which type code to use when reporting a substitute who is not a retiree.
Reporting retirees as substitutes
The type codes that you can use for reporting a retiree who returns to work are 93, 94, 97, 98, or 99. Refer to the Retiree return-to-work reporting charts to determine the right type code for the retiree. Do not use the substitute codes for reporting retirees. Refer to this chart for which type code to use when reporting a retiree working as a substitute.
Substitute to active member within the same month
How to report an employee who began employment as a substitute and then became an active member within the same month:
• If earnings were reported in error as a substitute, back out the compensation and hours/days using the substitute type code.
• Report an end date for the substitute service.
• Let the data process.
• Next, report the begin date for the active service time using active member type codes.
• Report all compensation, contributions, and hours/days for the active member for the entire month using active member type codes. You will need to determine if the compensation, contributions, hours/days can be reported via Employer Reporting Application or if you will need to report this information via your own payroll system.
Substitute to active member in a new month
How to report an employee who began employment as a substitute, then on the first of the following month became an active member:
• Report an end date for the substitute service.
• Let the data process.
• Next, report the begin date for the active service time using active member type codes.
• Report all compensation, contributions, and hours/days for the active member using active member type codes. You will need to determine if the compensation, contributions, hours/days can be reported via Employer Reporting Application, or if you will need to report this information via your own payroll system.
Substitute to active member, but no substitute end date transmitted
What to do if a begin date for the active service was transmitted, but an end date for the substitute service was never transmitted: While it is strongly recommended that employers transmit the end date for the substitute service, DRS now has an edit in place that will automatically insert an end date for the substitute service that is one day prior to the begin date transmitted for the active service. However, any compensation and hours/days reported in error as a substitute will need to be backed out and re-reported as an active member. This type of backout must be done manually at DRS. Contact ESS for assistance.
Active member to substitute within the same month
An employee working as an active member, for example in November, becomes a substitute mid-month:
- Report all compensation, contributions, and hours/days for the entire month of November with active member type codes.
- Report the end date for the active member as the last day of the month–in this case as November 30th.
- Let the data process.
- Report a begin date of December 1 for the substitute service. Because the employee was working as an active member through part of the month, all service is reported as active. Begin transmitting only compensation and hours/days for the substitute service beginning December 1 with the substitute type codes using the substitute chart.
Transmittal reporting for substitutes and ineligible employees
What system and plan?
The charts must be used in the order listed. When determining type codes, retirees take precedence over all types of reporting.
- Retiree return-to-work reporting charts if the individual is a retiree, use these charts.
- Employees working in school districts and educational service districts: Use for reporting eligible, ineligible and educational substitute positions. Do not use for retirees returning to work.
- Substitute teachers working in higher education, the School for the Deaf or the School for the Blind are not reported on the transmittal. The employer should provide the substitute with a quarterly report.
Reporting considerations for substitutes
- Begin and end dates: Report the first day that the substitute works as their begin date. Do not report the first day of the month or the start of the school year unless it is the first day they work for you as a substitute. Report the last day a substitute works as their end date. Do not report the last day of the month or the end of the school year unless that is the last day they work for you as a substitute.
- Status changes: If an employee transitions from substitute status to active/eligible member status, report an end date as indicated above for their substitute service and a new begin date for their active/eligible service; however, report all earnings for the month under the active/eligible type code. Follow these same procedures if the employee transitions from active/eligible member status to substitute status.
Transmittal codes
How to report on the transmittal report effective with the 2004-2005 fiscal/school year
Report compensation for each employee. Report days with System/Plan T1 or type code 80. Report hours for all other examples where indicated. See the chart below to determine the system, plan, type code, and if contributions are reported.
How to report on the transmittal report effective with the 2004-2005 fiscal/school year
Report compensation for each employee. Report days with System/Plan T1 or type code 80. Report hours for all other examples where indicated. See the chart below to determine the system, plan, type code, and if contributions are reported.
TRS Plan 1 Member
| Service for you | System/plan | Type code | Report contributions |
|---|---|---|---|
| Substitute teaching | T0 | 80 | No |
| Substitute teaching + less than full-time contract | T1 | 71 | Yes |
| Substitute teaching + full-time contract | T1 | 71 | Yes |
| Full-time contract only | T1 | 71 | Yes |
| Less than full-time contract only | T1 | 71 | Yes |
| Substitute teaching + Classified eligible position | T1 | 71 | Yes |
| Substitute teaching + Classified ineligible position | T1 | 71 | Yes |
| Substitute teaching + Classified substitute | T0 | 80 | No |
| Classified substitute | T0 | 80 | No |
TRS Plan 1 Former (withdrawn) Member
| Service for you | System/plan | Type code | Report contributions |
|---|---|---|---|
| Substitute teaching | T0 | 80 | No |
| Substitute teaching + less than full-time contract | T1 | 71 | Yes |
| Substitute teaching + full-time contract | T1 | 71 | Yes |
| Full-time contract only | T1 | 71 | Yes |
| Less than full-time contract only | T1 | 71 | Yes |
| Substitute teaching + Classified eligible position | T1 | 71 | Yes |
| Substitute teaching + Classified ineligible position | T1 | 71 | Yes |
| Substitute teaching + Classified substitute | T0 | 80 | No |
| Classified substitute | T0 | 80 | No |
1 ESD’s use type code 30.
2 The TRS eligible or ineligible position must be a contracted position.
3 If you know the employee does not work for any other employer, substitute reporting is optional.
4 If combined hours meet eligibility criteria. Otherwise, report type code 79 on TRS report.
5 If combined hours meet eligibility criteria. Otherwise, report type code 39 on SERS report
6 ESD’s use type code 08.
TRS – Employees working as substitutes in school districts & educational service districts
How to Report on the Transmittal Report Effective with the 2004-2005 Fiscal/School Year: Report compensation for each employee. Report days with System/Plan T1 or type code 80. Report hours for all other examples where indicated. See the chart below to determine the system, plan, type code, and if contributions are reported.
TRS Plan 2 or TRS Plan 3 Member
| Service for you | System/plan | Type code | Report contributions |
|---|---|---|---|
| Substitute teaching | T0 | 79 | No |
| Substitute teaching + teaching ineligible position2 | T0 | 79 | No |
| Substitute teaching + teaching eligible position2 | T2 or T3 | 71 | Yes |
| Teaching eligible position2 | T2 or T3 | 71 | Yes |
| Teaching ineligible position2,3 | T0 | 79 | No |
| Two teaching ineligible position2,4 | T2 or T3 | 71 | Yes |
| Teaching ineligible position + Classified ineligible positions2,4 | T2 or T3 | 71 | Yes |
| Substitute teaching + Classified eligible position | E2 or E3 | 32 | Yes |
| Substitute teaching + Classified ineligible position | T0 | 79 | No |
| Substitute teaching + Classified substitute | T0 | 79 | No |
| Classified substitute | E0 | 39 | No |
1ESD’s use type code 30.
2The TRS eligible or ineligible position must be a contracted position.
3If you know the employee does not work for any other employer, substitute reporting is optional
4If combined hours meet eligibility criteria. Otherwise, report type code 79 on TRS report.
5If combined hours meet eligibility criteria. Otherwise, report type code 39 on SERS report.
6ESD’s use type code 08.
SERS – Employees working as substitutes in school districts & educational service districts
How to Report on the Transmittal Report Effective with the 2004-2005 Fiscal/School Year: Report compensation for each employee. Report days with System/Plan T1 or type code 80. Report hours for all other examples where indicated. See the chart below to determine the system, plan, type code, and if contributions are reported.
SERS Plan 2 or SERS Plan 3
| Service for you | System/plan | Type code | Report contributions |
|---|---|---|---|
| Classified substitute | E0 | 39 | No |
| Classified substitute + Classified ineligible position | E0 | 39 | No |
| Classified substitute + Classified eligible position | E2 or E3 | 32 | Yes |
| Classified eligible position | E2 or E3 | 32 | Yes |
| Classified ineligible position | E0 | 39 | No |
| Two Classified ineligible positions 1,5 | E2 or E3 | 32 | Yes |
| Classified ineligible position + teaching ineligible position1,2,5 | E2 or E3 | 32 | Yes |
| Substitute teaching + Classified eligible position | E2 or E3 | 32 | Yes |
| Substitute teaching + Classified ineligible position | T0 | 79 | No |
| Substitute teaching + Classified substitute | T0 | 79 | No |
| Substitute teaching | T0 | 79 | No |
| Substitute teaching + Classified eligible position | P1 | 18 | Yes |
| Substitute teaching + Classified ineligible position | T0 | 79 | No |
PERS Plan 1
| Service for you | System/plan | Type code | Report contributions |
|---|---|---|---|
| Substitute teaching + Classified eligible position | P1 | 18 | Yes |
| Substitute teaching + Classified ineligible position | T0 | 79 | No |
1ESD’s use type code 30.
2The TRS eligible or ineligible position must be a contracted position.
3If you know the employee does not work for any other employer, substitute reporting is optional.
4If combined hours meet eligibility criteria. Otherwise, report type code 79 on TRS report.
5If combined hours meet eligibility criteria. Otherwise, report type code 39 on SERS report.
6ESD’s use type code 08.
Status Codes for substitutes
What are status codes?
Status codes determine the service credit and retirement benefit a member is entitled to. DRS depends on your accurate reporting of these codes.
Please carefully read the status code section in Chapter 7 for Substitutes Working in School Districts and ESDs to verify you’re using the codes correctly.
Note: There is no Status code M for substitutes.
What is a type code?
A type code is a two-digit number that identifies the type of employer an employee works for or the type of job an employee performs. In determining type codes, there is a hierarchy for reporting employees based on their retirement status and the type of position in which they are working. The charts below should be used in the order listed. When determining type codes, retirees take precedence over all types of reporting.
- Retiree return-to-work reporting charts these charts include retirees returning to eligible, ineligible and substitute positions. If your employee isn’t a retiree, go to number 2.
- Substitute reporting chart: If your employee does not fit this category, go to number 3.
- List of type codes by system for employees working in one eligible position: If your employee is working in more than one system, refer to each system’s plan rules.
Refer to the type codes for substitutes working in school districts and ESDs
Before using a cash out code
Some cash out codes can be used for reporting retirees returning to work and substitutes working in school districts or educational service districts. Refer to the Quick Reference Status Code Charts above for a summary of all status codes (including cash out status codes) for active members, retirees and substitutes.
The quarterly report
The quarterly report provides a record of the number of hours or days a substitute employee worked and the amount of compensation earned. The substitute can use this information to estimate the cost of purchasing service credit. Substitutes apply by contacting DRS and submitting the Substitute’s Application for Service Credit for their plan and system. Substitutes employed by the School for the Deaf, School for the Blind or any higher education institution must include the quarterly report when they submit their application to purchase service credit.
School district and educational service district employers are required to provide SERS classified substitute employees with quarterly reports showing hours worked and compensation earned in each month.
School district and educational service district-covered employers are required to report hours and compensation for substitute employees on the monthly transmittal report. The quarterly report is not required unless the substitute employee is applying for service credit for a period before the 2004-05 school year, or if your organization’s payroll system doesn’t report substitutes to DRS, such as a community college.
What to include
To be accepted as proof of service and compensation, the quarterly report must provide:
- Your organization’s name and TRS or SERS reporting group number. The reporting group number is not required by law on the quarterly report; including it will assist the DRS Retirement Services Division to process the substitute’s application.
- The employee’s name and Social Security number.
- The total number of hours (for Plans 2 or 3) or days (for TRS Plan 1) the employee worked for you each month. (If you are not sure of an employee’s plan, report the employee’s hours or days and give the conversion rate. For example, 7.5 hours = 1 day).
- The total amount of compensation the employee earned with you each month. Be sure to identify compensation by when it was earned, not by when it was paid.
- The signature of the payroll officer or other person authorized to sign Verification of Employment forms.
If your quarterly report does not include this information, you will be required to provide missing details at the time the substitute applies for service credit.
How it should look
Refer to Figure 5-1 for an example of a quarterly report using the recommended format. This sample shows how information should be reported for the first quarter of a school year. The remainder of the report is completed as the employee works the remaining quarters of the year.
How the quarterly report is used
Substitutes must submit their quarterly reports to DRS with their application to purchase service credit for a period of employment 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. Substitutes can apply for service credit any time before their retirement. To receive service credit, they must:
- Be an active TRS or SERS member (or be eligible for TRS or SERS membership based on their service as a substitute)
- Submit the quarterly reports after the end of the school year for which application is being made (June 30 for TRS Plan 1 or Aug. 31 for Plans 2 and 3) and before retirement
- Pay all employee contributions due, as well as any interest that might apply
The employee will be billed for the interest on both employee and employer contributions if payment is made more than six months after the end of the school year for which application has been made. The employer will be billed for employer contributions only after the employee’s contributions and any applicable interest have been paid.
Additional resources
Service credit rules for substitutes
Type codes by system
Employer frequently asked questions about substitutes
I have a teacher leaving at the end of the school term. This teacher’s last day of work as outlined in the contract is June 20, and the contract ends later in the summer. What should I report for an end date and when should I report it?
- For TRS, SERS and PERS Plans 1, report the date of resignation. Most school districts require the employee to submit a letter of resignation to clearly indicate the official date of resignation. The resignation date affects School Employees Benefits Board (SEBB) coverage and the DRS end date used for retirement. Transmit the end date to DRS with the last payroll data for the employee.
Do I report sick leave cash outs for a school district, ESD or charter school employee?
- No. A sick leave cash out for a school district or ESD employee isn’t reportable and isn’t included in the employee’s retirement benefit calculation.
Employers are encouraged to submit questions not answered here to Employer Support Services.
Glossary
Ineligible position (for PERS, SERS, and TRS Plans 2 and 3)
The position that is not eligible for retirement coverage. For information, refer to Chapter 2: Membership.
Part Time
Includes substitutes and anyone who doesn’t meet the full-time definition.
School day
The number of hours in a day that make up a complete day of work, as defined by the employer. In the absence of an employer definition, Washington Administrative Code defines the school day as seven hours long.
School year
The period from Sept. 1 through Aug. 31 of the following year. The period is used to calculate service credit for TRS Plans 2 and 3 and PERS Plans 1 and 2 education members.
Substitute
A classified or certificated employee who is employed as a substitute for an absent employee or is working in an ineligible position for a school district or an educational service district.
