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How to Report Severance Pay

Jeremy HaggardBy Jeremy Haggard - January 4, 2024

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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.

Side-by-side images from ERM showing differences between PERF Hybrid and PERF My Choice

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