Michigan 457 Plan for Basic and MIP Webinar w/ Q&A

4/2022

Live Webinar Recording: https://recordings.join.me/HQMWp4HhM0uQk-n2dPvITQ

 

Q/A: We have a field that we chose to add a Detail 4 record for these employees. Can we use that instead?

Answer: The examples that we have been using is a special setup so that the gross wages will be pulled for a detail 4 record. If you have further questions please enter in a x-connect to review your setup.

Q/A: Do we have to do this, even if employers choose not to participate?

Answer: Yes, all employees will be required to have a detail 4 record uploaded starting May of 2022.

Q/A: We use one DC code and change the percent, is there a benefit to creating a new code verses using the one we have.

Answer: Yes, there are benefits to creating a new benefit code.

1.   It will be easier to track

2.   Using a benefit code will limit mistakes or deductions from being withdrawn from employee wages until they decide to participate.

 

Q/A:  Starting in May, ORS requires all Basic and MIP members be reported with a detail 4 record.  I setup my new "ORS 457" code today as an Employer DC benefit.  I`m wondering why the SDS instructions have my clone a benefit and not a deduction?  Wouldn`t this be a new deduction code for all Basic and MIP staff?  The deduct code has a "Y" under Fringe Benefit because of the cloning of a benefit.

 

Answer:  After testing and several of SDS support staff agreeing, we recommend setting this up as a benefit with zero amounts to calculate. Again, this up to the school’s discretion. You may use a deduction, but below are the reasons we recommended using a benefit.

1.   Every employee must be reported, and many will not participate in the deduction.

2.   Using a specific benefit code will be easier to sort for reporting purposes.

3.   Using a benefit code will eliminate adjustments for W2s and refunding employees if a mistake is made. It is easier to adjust a benefit code than a deduction.

4.   A deduction to an employee’s wage will not happen by mistake. You will only  add a DC deduction  if you receive information from ORS/ Voya.