Missouri LAGERS employers must complete and submit a monthly wage report for covered employees as part of the administration of their LAGERS plan. This report helps determine the employers’ contributions and members’ final average salary at retirement.
So, what is included in your monthly reported wage? The following is a breakdown:
- Salary: Gross wages including overtime, recurring bonuses, paid time off (vacation, sick, comp time, etc.).
- Recurring Lump Sum Payments: Lump sum payments made in more than one reporting month. For example, annual leave cash outs or buy backs that are paid over more than one month.
- Fees: Any fees considered as salary.
- Deferred Compensation: Any payments made to a deferred compensation plan. This includes contributions to your 457(b) accounts.
- Allowances: Regular, recurring allowances as part of your compensation which may include uniform allowance, tool allowance, cell phone allowance, car allowance and the like.
The following is a listing of items that will NOT be included in your wages reported to LAGERS:
- Employer contributions to defined contribution accounts.
- Employer payments for any insurance premiums; however, if you pay any part of the insurance premium, it will be reported as part of your monthly wage.
- Expenses incurred by you that are reimbursed by the employer. For example, if you attend a conference out of town and you are reimbursed for travel and lodging, that amount is NOT included in your wages reported to LAGERS.
- One-time lump sum payments which include the one-time sell back of sick and vacation leave after you terminate employment.
- Salary or benefits paid to you for any month you were on worker’s compensation, military or educational leave.
- Short term disability payments administered by the employer or a third party.
If you have a unique circumstance or situation of which you seek clarity, or if you have any questions concerning wage reporting, we encourage you to contact us.