OR PERS SB 1049 - How to stop Munis from over withholding in the payroll
- Knowledge Assistant
How do I setup Munis so it will recognize the employee reached the maximum OR PERS SB 1049 (Senate Bill 1049) salary and not over withhold?
- Payroll
- Oregon
- OR PERS Retirement Report
Starting January 1, 2020, SB 1049 changed the definition of “salary” for PERS purposes and created a new $195,000 limitation on subject salary. The limit impacts what PERS considers “subject salary” paid after January 1, 2020.
Partial years: If you have an employee who works fewer than 12 months during a calendar year, their salary limit will be prorated based on the number of months they are employed in an active, qualifying position that year. For example, if a member terminates on August 3, 2020, after working prior to 2020, they would have eight months of “active membership” for 2020.
Their 2020 partial year limit would be:
(8 ÷ 12) × $195,000 = $130,000 partial year limit
Add a Calendar Year Gross limit to the deduction, as follows:
- Open the Deduction and Benefit Master program.
- Select Search
- Enter the PERS deduction code
- Select Update
- Enter the limit amount (i.e. 195000) in the Empe Limit field
- Select Z - Calendar Year - Gross from the Limit Type drop down
- Select Accept
- Repeat Steps 1 through 7 for each applicable PERS deduction code
In a scenario where there is a partial year limit, enter the prorated limit amount at the Employee Deduction level, as follows:
- Open the Employee Deductions program.
- Select Search
- Enter the Employee number and the PERS deduction code
- Select Update
- Select 04 - Pct from Employee Deduction from the Calc Code drop down
- Enter the prorated limit amount for this employee in the Employee Limit field