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Process the City Payroll?

Reporting Payroll

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 considered timely if transmitted by First-Class United States mail, postage prepaid, and postmarked no later than the 15th day of the month in which the payments are due.

The additional options we have given cities for paying their contributions (either Full Rate or Phase-in Rate, somewhere in between, or making additional lump sum contributions) mean that reporting payroll may be a more complicated process for some cities.

On the Summary of Monthly Payroll Report (TMRS-3) under “Municipality Remittance” – specifically, line 2A – the city payroll officer will need to indicate the actual percentage paid for that month. Whether your city is paying the Full Rate, the Phase-In Rate, something above the Phase-In Rate, or a rate greater than the Full Rate, the correct percentage (computed from the actual amount you are submitting) must be indicated on line 2A of the TMRS-3 form.

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).

REMEMBER: No matter what option your city chooses – Phase-In, above Phase-In, Full Rate, or greater than Full Rate, it is incumbent on the city to tell TMRS the percentage you are sending each month by indicating the percentage on the Summary of Monthly Payroll form (TMRS-3).

Reporting Payroll Electronically

TMRS encourages you to use the TMRS City Portal for electronic filing. Besides allowing you to run reports and perform other functions, the City Portal is the easiest way to file your payrolls electronically. Contact the City Portal Administrator for your city to become an Authorized User of the City Portal. If your city doesn’t yet have access to the City Portal, you can get started by sending an e-mail to TMRS’ City Portal Contact, Veronica Escobedo.

If you have any questions after reviewing these materials, call 800.924.8677. If you have problems accessing any of these links, send a note to the TMRS webmaster.


  1. User Name and Password
    You will need a secure username and password to access TMRS Online Payroll Data Reporting. To obtain a username and password, fill out and fax TMRS your Primary and Secondary Account information using the For Secure FTP form, then sign and return it to TMRS. After we receive the form, an IT staff member will contact you with your username and password.
  2. Files and Formats
    After you enter your username and password, click on the Upload button, then click Browse to go to the file location. Once you have selected the file and the name is displayed, click Upload to send the file to TMRS. The file you are uploading can reside anywhere on your computer or network, and should be in the format specified in the File Format Instructions (IS-102). If you have been submitting payroll data to TMRS electronically, the format has not changed.

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
  • Valid email address  

Fax (512-476-5576) the form (attention: Chris Gillis). After we receive the form, we will contact you with your username and password.

If you have questions about TMRS Online Payroll Reporting, please call TMRS toll free at 800-924-8677 and ask for Chris Gillis.

Reporting Payroll Manually

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

  • Watch the tutorial “How to Fill Out Payroll Forms,” which guides you through completion of TMRS payroll forms, and shows you how to calculate the correct amount to send to TMRS each month.
  • 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 at 5, 6, or 7 percent depending on your city plan.
  • 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.

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.

All TMRS cities submit a Monthly Payroll Report (payroll) every month, which includes the current, correct TMRS contribution rate. To learn how to submit payroll, please follow these steps:

  1. Download and print the Payroll Reference Guide (PDF). Read this document first, and keep the printout for reference.
  2. Watch the tutorial “How to Fill Out Payroll Forms,” which guides you through completion of TMRS payroll forms, and shows you how to calculate the correct amount to send to TMRS each month.
  3. As needed for review, read the “FAQs Regarding Payroll Submission.”
  4. Congratulations! You have completed training for manual payroll filing. You are ready to fill out your TMRS-0002 and TMRS-0003 to submit them to TMRS.
This training page and its components are informal presentations of information about TMRS® and related issues. If any specific questions of fact or law should arise, the statutes will govern. TMRS, MyTMRS, and the TMRS Logo are registered trademarks of the Texas Municipal Retirement System.

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

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 (see Online Payroll Reporting Guide) 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).

IMPORTANT NOTE – Your monthly TMRS reports and fund submission are NOT counted as received (and your employee accounts will not be credited) until both the funds and the signed TMRS-3 form have been received. If sending a check, the funds must be postmarked by the 15th of the month to prevent incurring a late fee.
Don’t Double Up!
If you fax a form, do not mail a separate copy. We only need one copy of each form, either faxed or mailed.
Member account information is confidential. To change your account, a form is required. For all other inquiries you may call or write as shown in this table (pdf).