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 through TMRS secure 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 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.

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.

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.

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.

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.


Filing 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 your City Portal Administrator 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.


Payroll Reporting (through FTP)

Payroll Reporting FTP Log in

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  

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

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.


FAQs Regarding Payroll 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 Payroll Report (TMRS-0003) electronically?

A.   Yes, TMRS encourages you to do so. The best, easiest way to file your city payroll 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 payroll electronically.


Q.   What is the deadline for submitting my monthly payroll to TMRS?

A.   The monthly payroll must be submitted to TMRS no later than the 15th day of the month following the payroll period being reported. 

  • The payroll 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 payroll is received after the 15th day of the month.

Q.   How do you calculate the late fee?

A.   If the payroll is 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 payroll 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 payroll report.  

Q.   Why does TMRS require an authorized city contact to sign the City Certification section of the payroll report? 

A.  TMRS must verify that the payroll 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 payroll?

A.   No. Our payroll 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 payroll 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 payroll 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.


Online Payroll Training


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, see the FAQs tab above for more information 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.

For additional information about processing your city's payroll, see "How Do I… Process the City Payroll?"