La. Admin. Code tit. 58 § III-201

Current through Register Vol. 50, No. 11, November 20, 2024

Section III-201 - Earnable Compensation Accounts

A. Earnable compensation shall not include compensation paid to an active member or to an inactive member of Teachers' Retirement System of Louisiana (TRSL) if the compensation is paid by a secondary employer and is reported to the Internal Revenue Service (IRS) on a Form 1099, but only if both the following occur.

1. The individual contract is for $1,000 or less, and a Form 1099 is issued.

2. The cumulative amount of the Form 1099 payments issued by a single secondary employer to that member does not exceed $15,000 in a fiscal year.

B. If an individual contract is for more than $1,000, then that entire payment is earnable compensation subject to TRSL employer and employee contributions.

C. If the cumulative amount of the Form 1099 payments issued by a single secondary employer to that member exceeds $15,000 in a fiscal year, then all Form 1099 payments in excess of $15,000 in that TRSL fiscal year are earnable compensation subject to TRSL employer and employee contributions.

NOTE: A secondary employer is one who does not report W-2 earnings on this member.

D. Earnable compensation shall include any and all compensation paid to a retiree of this system by a TRSL-covered employer regardless of IRS reporting.

La. Admin. Code tit. 58, § III-201

Promulgated by the Department of Treasury, Board of Trustees of the Teachers' Retirement System of Louisiana, LR 30:273 (February 2004).

AUTHORITY NOTE: Promulgated in accordance with R.S. 11:701(10).