BPI can process payroll for public schools in conjunction with their third-party payroll service, and generate the necessary reconciliations and reports.
BPI can prepare and input the payroll information to be processed by a third-party payroll company. This includes calculating the deductions for benefits such as health insurance and life insurance, as well as retirement contributions by employer and employee.
We then make the payroll entries directly into the systems of the third-party payroll providers, and subsequently prepare the desired reports. After the payroll is processed by the payroll company, we input the payroll into the client's accounting software by department and grant allocation.
Our service includes tracking teacher contracts, which involves taking the total number of working days and converting it to an annual payroll calendar so that the teacher is paid throughout the year. If the teacher’s job is terminated, we prorate it accordingly.
We also prepare the monthly benefit reconciliations for each deduction or benefit category.
Retirement Savings Plans (INPRS)
The Indiana Public Retirement System (INPRS) provides a retirement savings plan for certified teachers at public schools. The Teachers’ Retirement Fund (TRF) allows teachers or their employing schools, or both, to contribute to the plan. There is also a fund for non-teacher employees of schools (i.e. administrators and staff) called the Public Employees’ Retirement Fund (PERF).
As with all such plans, there are specific requirements and prohibitions, and the procedures for paycheck deductions and payroll liability payments can be difficult to understand and implement. BPI has a payroll processing department dedicated to handling PERF and TRF payroll matters. We determine what rules and issues apply, make the necessary calculations, enter the paycheck deductions (contributions by employee), prepare the employer contributions, and send contribution funds to the plan.
We also prepare and send the various regular and annual reports required by PERF/TRF. Accuracy and timeliness are key, and BPI’s reputation for being able to successfully navigate the PERF/TRF maze is unparalleled.
403 (b) Plans
A 403(b) is a retirement savings plan for which the employees of nonprofit organizations are eligible, including schools. Conceptually, it is similar to a 401(k) in that, generally speaking, salary is deferred into the plan before income tax is paid, grows on a tax-deferred basis, and is taxed upon withdrawal.
A 403(b) plan may be used as an alternative to an INPRS plan, in which the school matches the employee’s contribution. Another option is for an employee who is participating in INPRS to make additional contributions to a 403(b) plan, if the school has elected to have such a plan.
Obviously, the rules regarding eligibility, deductions, matching, and contribution caps get complicated in a hurry. Fortunately, BPI has many years of experience in making the necessary calculations, and ensuring that paycheck processing is accurate.
BPI also performs regular 403(b) reconciliations, and prepares the annual census report required by third-party administrators (TPAs) of 403(b) plans.
Besides 403(b), BPI has experience with many other retirement plans as well.
Click here to read about our other areas of Public School Accounting services.