City Payroll Training
Reporting Contributions
Before submitting your funds, or at the same time, you must send us a detailed contributions report. The purpose of this report is to detail the monthly gross earnings and retirement deductions for each employee covered by TMRS. You may report electronically by uploading through the TMRS City Portal.
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).
Reporting Contributions Using the TMRS City Portal
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 contributions 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 Team.
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.
Commonly Used TMRS Forms
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 at 5, 6, or 7 percent depending on your city plan.
- Send the report to TMRS as part of the monthly contributions 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 contribution 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.
All TMRS cities submit a Monthly Contribution Report (payroll) every month, which includes the current, correct TMRS contribution rate. To learn how to submit contributions, please follow these steps:
- Download and print the City Monthly Contributions Reporting Reference Guide (PDF). Read this document first, and keep the printout for reference.
- As needed for review, read the “FAQs Regarding Payroll Submission.”
- Congratulations! You have completed training for manual contribution filing. You are ready to fill out your TMRS-0002 and TMRS-0003 to submit them 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.
Contact your financial institution to set up a monthly ACH transmission to TMRS. Call 800-924-8677 or email Accounts Receivable Team. at TMRS. Accounts Receivable 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.
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.
FAQs Regarding Contributions Submission
Q. Who is required to participate in TMRS?
A. Employees who receive compensation and perform duties in a position that normally requires services for not less than 1,000 hours a year are required to participate in TMRS.
- The city should evaluate all positions to determine if those positions require services for at least 1,000 hours a year. In other words, every position should be classified as “TMRS eligible” or “not TMRS eligible.”
- The TMRS Act does not include a definition for “full-time” or “part-time” positions. Rather, it defines participation based on the number of hours a person is expected to perform over the course of a year.
- The city should make this determination based on what the position normally requires, and not based on how many hours the person performing the job actually works.
- Once the city makes a determination that a position requires at least 1,000 hours a year, then any employee hired to fill that position is required to participate in TMRS. Employees do not have the option to decline participation.
Q. What does TMRS consider compensation?
A. “Compensation” is defined as the sum of payments made to an employee for performance of personal services. The types of payments considered to be “compensation” include base pay, overtime, vacation and sick leave (including payments for unused vacation and sick leave), longevity pay, certification pay, severance pay, employer pickup of employee contributions to TMRS, “cafeteria plan” benefits, and almost any other form of payment made to an employee, other than direct expense reimbursement.
- Rule of thumb: If it’s taxable, it’s compensation.
Q. Do city contribution rates change every year?
A. Yes, rates change annually. Each year the city goes through an actuarial valuation process to determine what rate the city will pay the following year. To know your city’s contribution rate, consult your rate letter, which is mailed to your city and also posted on the TMRS website.
Q. Can I send my TMRS Summary of Monthly Contributions Report (TMRS-0003) electronically?
A. Yes, TMRS encourages you to do so. The best, easiest way to file your city contributions electronically is to use the TMRS City Portal, an online tool giving cities the ability to share data with TMRS. We strongly encourage cities to go through the online training and become users of the City Portal. To start this process, send an e-mail to TMRS’ City Portal Team. If your city is already on the Portal and has a City Portal Administrator, contact your Administrator so you can become an Authorized User of the City Portal and easily submit your monthly contributions electronically.
Q. What is the deadline for submitting my monthly contribution report to TMRS?
A. The monthly contribution report must be submitted to TMRS no later than the 15th day of the month following the contributions period being reported.
- The contributions report form must be completed and signed by the authorized city official
- Payment is considered timely if submitted before the 15th of the month.
- A late fee will be incurred if the contributions report is received after the 15th day of the month.
Q. How do you calculate the late fee?
A. If the contribution are not received by the 15th day of the month, the city must pay interest on the past due amounts at an annual rate that is the total of TMRS’ investment return assumption for the preceding year, plus 2%.
- Late interest accrues daily until the report is received.
- Once the contribution report is received, TMRS will calculate the late fee and notify the city of the amount due.
- Cities should include the late fee on the following month’s contribution report.
Q. Why does TMRS require an authorized city contact to sign the City Certification section of the contributions report?
sA. TMRS must verify that the contribution information being reported is true and accurate. Therefore the City Certification section must be signed only by an authorized contact.
Q. Are negative adjustments allowed on the contribution?
A. No. Our contribution system does not recognize any negative adjustments. Therefore, if an adjustment is required, please contact our office for further instructions on how to submit a correction.
Q. What is the “Explanation for adjustments” section of the TMRS-0003?
A. This section will be used only if the city needs to inform us of any adjustments that were made on the contributions report regarding employee or city contributions. Please be sure to provide detailed information (including member name and SSN), why the adjustment is required, and the month for which you are making the adjustment.
Q. Is the TMRS Summary of Monthly Payroll Report required with every payment?
A. Yes. In order for TMRS to allocate the submitted funds, the city must submit a completed Summary of Monthly Payroll Report (TMRS-0003) each month.
Q. Can a contribution adjustment be submitted on a member who has refunded or retired?
A. No. Once an account has been either refunded or retired, TMRS can no longer make any adjustments. Therefore, it is extremely important that you contact TMRS immediately if you notice an error was made.