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.
Contributions should be sent to the Plan’s custodian, Orchard Trust, with each pay period. All amounts of Compensation deferred under the Plan shall be transferred to a Trust established under the Plan not later than fifteen (15) business days after the end of the month in which the Compensation would otherwise have been paid to the Employee.
Employers may submit the contributions electronically or manually. Electronic transmission ensures timely processing and eliminates paperwork. Contact WRS for more information, and to obtain necessary paperwork, to establish user log in for electronic transmission.
Manual processing entails sending a detailed contribution report, which includes the employee participant names, social security numbers and contribution amounts, along with one check. The check, representing the total of employee contribution deductions, is payable to Orchard Trust. With each manual contribution transmission, you will receive a turnaround document, which is a confirmation report of the transmittal, as well as your next pay period transmittal form. If you do not receive a timely turnaround document, do not delay sending your next pay period contribution deductions. Instead submit an excel sheet with participant and contribution information. Notify the Plan of any missing reports.
