Remember to submit severance pay in the appropriate fields on your wage and contribution file uploads.

Suppose you report $1,000 in regular wages and pay the person $4,632 for sick, unused vacation, bonuses, etc. In that case, you must report the $4,632 of sick, unused vacation, and bonus wages separately as severance pay, so the information is submitted correctly. If this does not happen, a member’s average salary is affected, resulting in a miscalculation of the member’s benefit.

For a quick review on this step, refer to the ERM Wage and Contribution Manual along with our Employer Reporting and Maintenance (ERM) Wage and Contribution (W&C) File Layout Specification.

If you have any questions, please contact our Employer Advocate teams at (888) 876-2707.