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FAQs - Employee Participation
WE HAVE COMPILED A LIST OF QUESTIONS FOR EMPLOYERS ALONG WITH OUR RESPONSES.
Scroll down to view the most frequently asked questions we receive and answers we provide.
Q: How do employees begin, stop or change their contributions?
A: Employees may begin, make changes to or stop their contributions by using the Program's website at Ohio457.org or by contacting the Service Center at 877-644-6457. On the website, employees who want to start contributing to the Program can access the tab labeled "Enroll."
Employees already making contributions to the Program can make changes by logging in to Ohio457.org. Current account information can be reviewed and changes may be submitted. Account information and changes may also be requested by telephone at 877-644-6457.
Account Executives are available for assistance Monday through Friday from 8 a.m.- 4:30 p.m. by calling 877-644-6457 and pressing 3.
Payroll departments are advised of changes on the Payroll Reduction Change Report sent by the Program and not from the employee.
Q: What if an employee is already participating in another deferred compensation program?
A:Each type of plan has annual contribution limits. An employee contributing to a 403(b) plan will have a contribution limit for that plan that is not considered for other types of plans. Employees may contribute to more than one 457(b) deferred compensation plan as long as the combined contribution total does not exceed the annual contribution limit.
For further information, the employee should contact our Service Center at 877-644-6457 and press 3 to speak with an Account Executive.
Q: What are annual contribution limits?
A: The chart below shows the annual contribution limits for several years. These limits are subject to change according to IRS rules.
Annual Contribution Limits
2023 Regular Contribution Limit $22,500
Age 50-Plus Contribution Limit $30,000
Catch-up Contribution Limit $45,000
2022 Regular Contribution Limit $20,500
Age 50-Plus Contribution Limit $27,000
Catch-up Contribution Limit $41,000
Q: What are procedures for contributing in the "50-plus" or "Catch-up" options?
A: It is best for employees to contact our Service Center for details by calling 877-644-6457.
FAQs - Remitting Contributions
Q: What if I am unable to remit a contribution for an employee?
A: This can happen due to:
- Leave without pay
- Employee termination or death
- Inadequate pay to cover contribution, etc.
To process an investment, Ohio Deferred Compensation must reconcile the total of the detail on the contribution billing to the remitted amount. Employers should make appropriate brief notes on the contribution billing explaining the omission. The total on the contribution billing should be changed to reflect an accurate total.
Note: Employers remitting electronically will show the omission in the detail of the file they remit.
Q: What if I receive my change report too late to take a deduction for an employee?
A: The deduction should be taken at the next payroll cycle. If the employee does not wish to "miss" the deduction, the amount may be doubled on the next payroll cycle and then set back to the regular amount thereafter.
Q: If I miss sending an employee contribution, can I send it with the next payroll contribution?
A: As long as the employee will not exceed his or her contribution limit for the calendar year, we can accept a missed contribution with the next payroll.
The employer should include a brief explanation for the change on the contribution listing when remittal occurs.
Q: Can I send billing reports and contributions to Ohio DC electronically?
A: Yes. The Ohio Business Gateway (OBG) allows you to file and pay several payroll withholdings, including Ohio Deferred Compensation. You can learn more about how to use the OBG with our Ohio Business Gateway Guide. Visit business.ohio.gov for more information or contact the Finance Department at 614-466-7245 for details.
Q: How do I get a contribution back from Ohio DC if I send it in error for an employee?
A: To obtain a refund, a Refund Request Form must be completed with the following information:
- Employee name
- Social Security number
- Payroll date
- Amount to be refunded
- A brief explanation for the request
Please email the Refund Request Form to:
Refunds are processed within 48 hours of receipt. You can expect to receive a check within 5-7 business days.
Q: Final "lump-sum" contribution (including leave time), not equal to Employee Contribution Billing?
A: If the amount received by Ohio Deferred Compensation is less than the amount billed, the lower amount will be accepted.
If the amount received by Ohio Deferred Compensation is more than the amount billed, the higher amount will be accepted as long as it does not cause the employee to exceed the annual contribution limit.
Q: Most years have 26 pay dates, this year I have 27. How do I handle the extra pay date?
A: To prevent employees who are contributing the maximum amount from exceeding the annual limit, a deduction may not be taken for these employees with the 27th pay.
Normally, you may not change an employee's contribution without a Payroll Reduction Change Report from the Program. However, employers are responsible for stopping or reducing deductions if it is necessary to prevent an employee from exceeding allowable limits.
It is important that you prevent over-contributions before they happen. This will eliminate the need for subsequent refunds, as well as correction to W-2's and related tax forms. If you have questions about this information, please call the Program at 614-466-7245.
Employers may omit contributions for only the employees contributing the maximum amount or they can choose to skip taking the contributions for everyone on the 27th pay.
Any contributions skipped should be reactivated for the first payroll in the new year.
FAQs - Payroll and Payroll Contact Changes
Q: If my payroll calendar changes, do I need to inform Ohio Deferred Compensation?
A: Yes. We will need to make changes to our computer system to reflect the correct payroll dates and number of payroll dates in a year.
We bill according to the number of pays from which deferred compensation is withheld. The number of pays might be different than the actual number of pays.
Q: What if an employer changes address, phone numbers or payroll contacts?
A: Our records need to be updated with the current address and contact information. Employers should convey this information to the Program via mail, telephone, fax or email.
Ohio Deferred Compensation
257 E. Town St., Suite 400
Columbus, OH 43215
Phone: 614-466-7245
Fax: 614-728-2601
Email: finance@OhioDC.org
FAQs - Unforseeable Emergency
Q: What information does Ohio DC need if an employee applies for an Unforseeable Emergency?
A: Documentation of lost wages is needed from the employer. Information specified on the Loss of Income form must be supplied to the Program on the employer's letterhead. This information can then be mailed or faxed to:
Ohio Deferred Compensation
257 E. Town St., Suite 457
Columbus, OH 43215
Fax: 614-728-2601
FAQs - Employer Match
Q: Can employers match employee contributions to 457(b) plans like Ohio DC?
A: Yes, an employer may match employee contributions to a 457(b) plan subject to the normal annual contribution limits.
Q: Why should we offer an employer match program?
A: An employer match program is a relatively low-cost benefit that may help attract and retain quality employees. Employer match programs may also be the incentive needed to motivate your employees to begin saving for retirement.
1. Attracting and retaining employees. An employer match will provide a competitive advantage over many other employers that can help attract and retain quality employees. In addition, several studies have shown that financially secure employees make better, productive employees—a win-win for employees and employers.
2. Lower cost to employer. Because employer match contributions are pre-tax, the same impact on employee take home pay can be achieved at less cost than providing a pay increase.
3. Added value to employees. Most employees are not saving enough for retirement. Employer match plans are a proven way to increase the number of employees saving for retirement while offering employees additional savings at no additional cost
Q: Do I need to amend the Plan Document to offer an employer matching contribution?
A: No. There is no Plan Document amendment necessary to provide a matching contribution.
Q: How do we set up and administer an employer match program?
A: The simplest way to set up an employer match program is for the employer to provide an additional amount of compensation per pay, i.e. the match, to those employees participating in Ohio DC. The additional compensation is only for those employees actively participating, or who choose to participate, and would be discontinued if an employee cancels his or her contribution.
Ohio DC will keep records for the total amount contributed each pay period. Since a vesting schedule is not permitted, the separate sources of these contributions are not segregated on our system. Ohio DC will bill to the employer for each pay period showing the total contribution amount.
Q: Does Ohio DC have a preferred procedure for matching contributions?
A: Yes. Experience has proven that employers who match contributions on a per-pay basis find it to be the simplest process for both the employer and the Program. Under this scenario, the employer would increase the participating employee's per-pay compensation, which would then become part of the employee’s contribution. This increase is contingent upon the employee actively participating in the Program. If an employee cancels his or her contribution, the employer would simply remove the additional compensation from the employee’s payroll record.
Q: Are there other acceptable methods for an employer to match contribution?
A: Yes. We have employers who provide a one-time, lump-sum match amount. This process is more involved for both the employer and Ohio DC. The employer will need to notify Ohio DC prior to the one-time match, so that both parties are aware of the timing and amount.
The employer must send a listing or data file of employees receiving an employer match separate from the regular payroll contribution listing. Ohio DC will return to the employer any money received for an employee who has separated from service, or who has reached their annual contribution limit. The employer will need to reprocess these funds through payroll as income to the employee.
Q: When an employee signs up for Ohio DC, how much should they choose to contribute?
A: Our Account Executives will enroll participants using the total combined contribution amount from the employer and employee. For instance, if the employee wants to contribute $50 per paycheck and the employer has agreed to match up to $25, the employee should declare a $75 contribution to Ohio DC. Ohio DC will then pre-bill the employer for the full $75.
Ohio DC does not give legal or accounting advice. Employers are ultimately responsible for the correct accounting of taxable income and withholdings.
Employers interested in matching employee contributions may contact the Service Center at 877-644-6457 with further questions.
FAQs - Contribution Billing and Change Reports
Q: How do I get a copy of my Employee Contribution Billing or Payroll Reduction Change Report?
A: Employers should email Ohio Deferred Compensation at finance@ohiodc.org.
FAQs - Employee Participation
Q: Who is allowed to enroll in Ohio Deferred Compensation?
A: Any public employee who is eligible for membership in one of the State's statutory retirement systems (including the City of Cincinnati retirement system) is eligible to enroll.
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