Submitting 457 Plan Contributions

When you deduct contributions for deferred compensation, you are withholding compensation from your employees’ paychecks. It is important to process the contribution deduction, for the benefit of the employee, in a timely manner.

The Department of Labor and the IRS which has very strict guidelines on the timeliness of contributions. The law states the employer must deposit participant contributions as soon as it is reasonably possible to separate them from the company’s assets, but no later than the 15th business day following each respective payroll date. Failure to remit compensation immediately to the employee’s account can make employers liable for losses that the employee might have suffered due to the delay and may also result in fines by the Department of Labor.

To assist agencies with timely remittances, WRS 457 Plan is streamlining its processes and encouraging agencies to remit payroll contributions and remittance notices electronically. Taking this action will keep contributions moving forward, even when there is turnover in a responsible position. WRS is happy to help your payroll personnel learn to remit contributions electronically on Empower’s website, and fund contributions via ACH (automated clearing house) instead of mailing a paper check.  

It’s our goal to have all agencies using the electronic contribution submission process. If your agency is already utilizing the Empower website to remit contributions online and using the ACH process, thank you. Each agency can access and confirm their payroll contribution processing and funding directly on the Plan Service Center, as well as run reports (participant deposit detail reports), and access the data on the Plan Service Center.

This process is more secure, protects your employees, and ensures that contributions are remitted in accordance with federal guidance.

Need help changing your processes? Please contact WRS 457 Plan at 307-777-3325 to obtain the necessary forms to enroll in the on-line remittance program through Empower’s website. As a reminder, the plan service center access is not transferable from one payroll specialist to another. Each payroll specialist is required to have their own credentials.

Thank you for helping us take the next step in streamlining our processes and for protecting your employees.