How Do I Handle City Payroll ?

There are two primary components of handling the city payroll:

• Submitting payroll data
• Submitting funds

If you are not currently sending your payroll data and submitting your funds electronically, TMRS strongly encourages you to do so. The benefits of electronic reporting and ACH payment are safety, speed, and cost savings.

New Feature - ONLINE PAYROLL TRAINING!

Submitting Payroll

Important Note - Reporting Contribution Percentage

Before submitting your funds, or at the same time, you must send us a detailed payroll report. The purpose of this report is to break out the monthly gross earnings and retirement deductions for each employee covered by TMRS. You may report manually (using a hard copy TMRS-2 form) or electronically by uploading a data file to TMRS’ secure FTP site or through the City Portal.

E-mailing the report as an attachment is not allowed because of the confidential nature of the information.

The Monthly Payroll Report is due in TMRS’ office by the 15th day after the calendar month for which deductions are being reported.

Reporting Payroll Manually (with TMRS-2)

Fill out and send TMRS your Employee Contributions Report (TMRS-2).

• Fill out the upper portion, identifying the city by name and number and the month/year being reported.
• Column A must include each employee’s correct Social Security Number.
• Column B reflects gross monthly earnings of each employee.
• Column C shows the actual amount of the retirement contribution deducted from the employee’s monthly salary.
• Send the report to TMRS as part of the monthly payroll package (which includes the TMRS-2, TMRS-3, and payment, explained in the “Submitting Funds” section). Use first class mail, prepaid postage, and postmark no later than the 15th of the month.

Reporting Payroll Electronically

New Feature - TMRS CITY PORTAL!

The best way to report your monthly payroll to TMRS is to use the City Portal. Directions for signing up are included in the link above (see step 2).

Reporting Payroll Electronically (through FTP)

Fill out and fax TMRS your Primary and Secondary Account information using the “For Secure FTP” form. More Info >>

FTP is an acronym (file transfer protocol) for the transfer of electronic files; an FTP site gives users a safe place to exchange confidential information. The “For Secure FTP” form enables you to use the TMRS electronic transfer account for the transfer of city payroll information only. Include the following:

• City name and number
• Contact name and title
• Worksite address and phone number
• City Contact signature and date  

Fax (512-476-5576) the form (attention: Rick Almanza). After we receive the form, we will mail your username and password.

Submitting Funds

In addition to your detailed payroll report, you must transmit payment each month to TMRS. You may send payment either by check or electronically (via ACH transmission with your city's financial institution).

A Summary of Monthly Payroll Report (TMRS-3) must be submitted to TMRS each month, regardless of whether you transmit funds by paper check or ACH transfer. 

The purpose of the TMRS-3 is to provide TMRS a summary breakdown of the employee and municipal contributions; in addition, the TMRS-3 must be certified by an authorized city official.

If your city is making an additional payment in a lump sum, you will also need to send the Remittance of Lump Sum City Contributions form (TMRS-3ADD). See also NOTE below.

NOTE: Beginning in 2009, you were required to enter the actual percentage paid for each month on line 2A of the TMRS-3 form. Depending on your city's situation you need to include the full rate, phase-in rate, or a rate between the two. See this note for more information.

Submitting Funds Manually

Fill out and send TMRS your Summary of Monthly Payroll Report (TMRS-3).

• Fill out the City Information and Certification portion of the form (top). Include the signature of the Authorized City Official submitting the form and funds.
• Fill out the Employee Remittance information (from TMRS-2).
• Fill out the Municipality Remittance information (current monthly match; adjustments and interest, if any; other applicable supplements, if any). The actual percentage paid for that month must be written on line 2A.
• Provide a total amount (employee + city contributions) in the appropriate box.
• Enclose a check for the total remittance. The check must match Line 3 of the TMRS-3 form.

Mail this Monthly Payroll Report package (TMRS-2, TMRS-3, and check) to TMRS.

Submitting Funds Electronically (ACH Funds)

Fill out and send TMRS your Summary of Monthly Payroll Report (TMRS-3) as described under "Submitting Funds Manually." Mail or fax it to TMRS.

In addition, the TMRS-2 form (or a data file) can be uploaded to the secure FTP site (more info >>) or it can be faxed or mailed.

Contact your financial institution to set up a monthly ACH transmission to TMRS. Call 800-924-8677 and ask for Josette Madry, Accounting Operations Supervisor. She will give you the bank account information relevant to TMRS and any other additional information that may be required by your bank. In your discussion with your bank, you will need to ask about any bank fees that may be assessed to the city or any software that the bank recommends you use to complete the ACH transmission.

After you have set up ACH with your bank, test the ACH setup by sending a $1 test payment. Accounting Staff at TMRS will call you to confirm receipt of your test payment.

Each month, fill out the Fax Cover Sheet for ACH Contributions and fax it to Josette Madry in the Accounting Department. This is a record for TMRS of the payment amount, when you made the electronic transfer, and when we can expect to receive your payment (as a credit in our bank account).