Is there a way to set up a limit that automatically stops the TRS deduction once the TX TRS IRS Salary Cap Provision has been met

Owned by Knowledge Assistant
Oct 03, 2022
2 min read



Description of Issue

Is there a way to set up a limit in Munis that automatically stops the TRS deduction once the creditable wage amount has been met?



Context

  • Payroll

  • Texas

  • TX TRS Report



Cause




Resolution

No.

The IRS Salary Cap for TRS is based on TRS plan year of September 1 through August 31, and not your Fiscal year.

Munis cannot currently accommodate Limits with a custom timeframe, so this must be monitored manually.  We recommend creating an SSRS report, using Cubes or using the Payroll Detail History program to track the sum of deduction gross from the regular, member paid, TRS deduction code, for Check Dates within the TRS plan year.

When an employee approaches a limit: 

  • Manually maintain the TRS gross in the Payroll Warrant where the limit is met.

    • Open the Employees Earnings and Deductions program and select the Withholding tab.

    • For EACH TRS deduction code, double click on the Deduction, select Update and change the Gross amount so it reflects just the eligible amount from this payroll. 

    • This will ensure accurate contribution amounts.

  • Make Employee Deductions changes.

    • Open the Employee Deductions program. 

    • Search for TRS deduction(s).

    • Select Update and enter the End Date of the Warrant the limit was met in.  This will prevent the deduction(s) from Generating into Payrolls for the remainder of the TRS plan year.

    • Select Add and create a new record for the TRS deduction(s) you've end dated.  Create them with a Start Date of 09/01 of the following TRS plan year.  This will ensure that contribution amounts are processed correctly when the TRS plan year resets.

    • Select Add and create a record for your TRS Zero Dollar deduction.  Create this with an End Date of 08/31 of the current TRS plan year.  This will ensure that the Zero Dollar deduction stops when the current TRS plan year ends.    

  • When you Generate RP20 records for the month the limit was met in, you will need to manually correct the TRS Eligible Compensation amount on the RP20 Period Records for affected employees to essentially subtract the amount you excluded from deduction gross in the Payroll Warrant update.  The Period Record maintenance is only necessary when the Report Month/Year is the Month/Year they met the limit in. 



Additional Information

Reference the following link for more details on the TX TRS IRS Salary Cap Provision:   https://www.trs.texas.gov/Pages/re_salary_cap_provision.aspx