Resolving RE Ledger Shortages

Has this happened to you?  All of the Regular Payroll (RP) or Employment After Retirement (ER) record errors have cleared, but an error message remains for an outstanding balance. 

Below are some recommendations for Reporting Employers (REs) to avoid or resolve the situation. Resolving outstanding balances as soon as possible helps minimize interest and avoid an override.

Submit the Report for Validation 

If you see the message above, Submit All Records within the report so the file can validate again. It may be as simple as the report validation happened before the TEXNET Deposit posted. The report must go through validation once balances due have been paid to clear the error message.

Accurate TEXNET Deposits 

The Texas Comptroller of Public Accounts operates the TEXNET payment system. Reporting Employers (REs) use this system to remit payments to TRS. Review the TEXNET deposit prompts carefully to ensure the payment applies to the correct contribution account. Some of the TEXNET prompts differ slightly from the TRS RE Ledger. Refer to the TRS TEXNET Training for the order of the TEXNET prompts and the corresponding RE Ledger account description for accurate deposits.     

Review the TEXNET deposit receipt for typos or transposed numbers, or to locate a deposit made to the wrong account. An additional TEXNET deposit may be the best way to resolve account shortages if a TEXNET deposit error occurs. 

Check the RE Ledger Early 

If an RE receives an error due to outstanding balances from their prior report month, an override request may be submitted with a TEXNET receipt showing all balances paid but payment yet to post. Some overrides for errors are inevitable, but errors for payments due can usually be avoided if the RE Ledger is reviewed early. 

If still working on an RP or ER report three to five days before the grace period ends, take time to check the RE Ledger for outstanding balances. This should allow time to address any shortages, reducing the need for override on balances due. 

Monthly Reconciliation 

An important step of TRS Reporting is reconciling the RE ledger each month with your RE’s internal payroll data. If the compensation and/or contribution calculated by the internal payroll system does not match the reported totals within the RE Portal when in Completed status, be sure to research and identify the root of the imbalance. If corrections are identified, complete them in a timely manner. 

Record Monthly Report Completion 

REs may find it helpful to create a record of the RE Ledger during the reconciliation process by saving a PDF of the report Totals screen. You can find the Totals for your RP, ER or Adjustment reports by navigating to the Totals hyperlink on the Report Summary Screen.

Note the RE Ledger Balance column on the Totals screen is a dynamic field. If additional reports complete and/or deposits received, the RE Ledger Balance is affected, and the amounts go up or down accordingly. 

To capture the “snapshot” when the report settles, save the Totals summary in a PDF before any other reports, deposits or transfers are made. 

End of Month Email of RE Ledger Balances 

At the end of each month, TRS sends an email to REs with RE Ledger balances, overages or shortages. This is another “snapshot” of the RE Ledger accounts on the last day of the calendar month. If your monthly report has reached a Completed status but the corresponding deposit has not posted, your email may show the RE Ledger balances as negative amounts because the receivables were created but the payment has not been received. You can check if your TEXNET deposit will cover the report totals due by comparing the amounts on the email to the TEXNET receipt. If you see a payment was short, make another TEXNET deposit before the due date to minimize interest. REs no longer receive the email if all account balances are zero.

Review the RE Ledger for Outstanding Balances 

You can navigate to the RE Ledger and search “All” contribution types for a summary view of the account balances. If any of the accounts reflect an unexpected balance, including overages or shortages, research to determine what action is needed. 

Negative Balances 

A negative balance for a contribution account may happen for a few reasons. Review the TEXNET receipt to verify all payments were entered on the correct account line. For example, if you intended to pay $1,000 for RE Penalty Fee due, but accidently entered $1,000 for Penalty Interest, your accounts will be out of balance. 

Positive Balances 

While “positive” balances may sound good – it may be an indicator of unreported information. 

Here are a few common examples: 

• Contributions paid for employees who were missing from the RP report. 

• Surcharges paid for retirees missing from the ER report. 

• Compensation funded through Federal Funds, or Education General Local Funds but the RP report did not indicate the funding source. If the funding source was not accurate, corresponding contribution will also be incorrect. 

• Incorrect or missing State Minimum salary could result in out of balances for Statutory Minimum and Public Education Employer Contributions.