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The purpose of this program is to produce reports that will assist with the SERS surcharge calculations and GAAP reporting.

SERS places a surcharge on SERS employees whose salaries fall below a predetermined minimum annual compensation amount. This amount is stored within the USPS software and updated each year when notified by SERS. The amount is then used by this program to generate reports of individuals who are included on the monthly SERS reports and who fall below the minimum compensation unless they retired, are deceased, or are refunded during the year. The retirement and refunded status must be pending in the SERS office prior to June 30 of the fiscal year to be excluded from the reporting.

An initial list of those employees subject to the surcharge is sent by SERS to school districts in the early Fall. SERS requests that this list be verified, any exclusions noted, and returned later in the Fall. In order for the Surcharge program to handle any exclusions correctly, the "Surcharge Exempt" flag must be 'checked' (yes) on the employee's 400 payroll item record under CORE/PAYROLL ITEMS.

Surcharge amounts for rehired retirees are not included on the reports. The surcharge is only calculated on "regular" earnings, not on earnings earned as a rehired retiree. Service days for a rehired retiree will not include days after the rehired date.

The Earnings Amount is calculated by adding up the 400, 590 and 690 withheld amounts.  The total withheld is multiplied by the SERS Employee Rate, which is currently 10 (10% employee rate).

The Surcharge program compares the minimum annual compensation amount to the employee's calculated earnings which is the total SERS contributions divided by ten percent. If the calculated earnings are less than the minimum annual compensation amount and the "Surcharge Exempt" flag is not 'checked' (yes), the program then counts service days. An employee without SERS days or earnings will not appear on the reports.

Next, the total surcharge amount is calculated. If the employee has worked at least 120 days, then the surcharge is equal to 14% of the difference between the calculated earnings and the minimum compensation level. For example, an employee works 125 days and has calculated earnings of $5,000. The minimum compensation amount is determined by SERS.  As of February 15, 2021, the the surcharge amount has changed for FY2020 to $23,000.   For current Surcharge amount, please go to  Districts can also contact SERS for the current rate or reference the SERS Employer Manual. The surcharge is calculated as follows:

($23,000 - $5,000) X 14% = $2,520.00

If the employee works less than 120 days, the surcharge is prorated based on 180 days and the total surcharge for the employee becomes a percentage of the gross surcharge. For example, an employee works 50 days and has calculated earnings of $5000.

The surcharge is calculated as follows:

First calculate the gross surcharge as if the employee worked over 120 days.

($23,000.00 - earnings from report) X 14% = $2,520.00

Next, divide the number of days worked by 180 to obtain the proration.

50/180 = .278

Then multiply the propration by the gross surcharge:

$2520.00 X .278 =$700.56 (surcharge amount)

The SERS Surcharge program generates a report that is similar in format to the one received from SERS. It lists the employee, earnings, days, and the calculated surcharge amount. 

Occasionally an employee will show up on the report sent by SERS with a lesser surcharge amount than what is calculated by the Surcharge program. SERS offers a discount on the surcharge amounts when an employee works in more than one school district. All employers involved will have a reduced surcharge for these shared employees. Since the software does not know which districts this employee has worked for, it is not possible for it to calculate the surcharge amount correctly. In this case, you will need to depend on the report from SERS.

To Create a SERS Surcharge Report

Field Definitions

  • The option, allows the users to create and save certain reports  for different report runs for each report option.  The Default option is the original SSDT report and the Most Recent is the last report that was ran by the user.  If the report is no longer needed, click on to delete the report.  The Default reports cannot be deleted.  
  • Select the Fiscal Year you want the surcharge amounts reported for 
  • Select the  field. Checked indicates that fixed amount pay accounts are to be included in the proration of the surcharge across the pay accounts. Unchecked indicates the surcharge amount is to be prorated across percentage pay accounts only

  • The Report Selection Criteria Sort By option, offers the following choices which will be in effect for the report:
    • Employee Number
    • Employee Name
    • Full Account
    • Fund
    • Function
    • Object
    • SCC
    • Subject
    • Operational Unit
    • Instructional Level
    • Job

  • Check to  from the Sort Options selected

  • Select the Report Format from the drop down box:
    • PDF (download)
    • Comma Separated Values

  • Click on  to create report (Every time this report is generated, it will appear under Utilities/File Archive/Payroll Archive and look in 20XX-SERS Reporting tab)

Example SERS Surcharge Report

Example SERS Surcharge report Including Subtotal 

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