To be eligible for USERRA, the employee must return to employment with his or her pre-military service employer. Employers must complete the USERRA Certification (ET-4560) form along with a copy of military-issued papers reflecting the employee's entry and discharge dates, such as the employee's DD214 when the employee returns from military service. The employer should complete and submit the USERRA Checklist (ET-2573) to notify ETF of military service that will be reported for the employee.
The employee must decide if they will make up none, some or all contributions. The employer must match the employee contribution amount that the employee paid. If the employee chooses to make up some or all contributions, the employer must report deemed earnings to correspond with the amount of contributions the employee paid.
Note: Regardless if the employee makes up none, some or all contributions, the employer must still report hours the employee would have had if they had not been away for military service.
USERRA Certification (ET-4560) Form
Employers must work with the employee to complete the USERRA Certification (ET-4560) form. ETF must receive the form along with a copy of military-issued papers reflecting the employee’s entry and discharge dates, such as their DD-214.
The form is necessary for two reasons:
- An employee on a military leave of absence receives WRS service credit for that period, with limited exceptions.
- An employee can choose to make up none, some or all the WRS employee-required contributions dating to the employee’s military leave of absence, within a period of three times the length of the employee’s service, up to a maximum of five years, whichever is earlier. These contributions must be paid back while employed at his or her pre-military service employer as pre-tax contributions.
The employee must fill out Section A. He or she then gives the form to their employer with a copy of military-issued papers, like a DD-214 form.
The employer certifies that the employee meets the requirement under USERRA and had completed Section A. The employer must include the employee’s deemed hours and earnings related to the employee’s military leave of absence. The employer then sends the form and supporting military-issued papers to ETF.
The employer must complete the following steps to report the USERRA information:
- Turn in the USERRA Certification Form (ET-4560), supporting military -issued papers and the USERRA Checklist (ET-2573), if it was completed, to ETF.
- Report the deemed earnings corresponding to the contributions the employee made on line 1 of the Monthly Remittance Report via ETF Web Applications for Employers.
- Include those contributions on the corresponding monthly remittance report as normal earnings and contributions by employment category.
- When processing a transaction (annual or termination), report all actual worked hours, earnings and EERC, plus deemed earnings, hours (they would have had if they did not go on leave) and EERC the employee made up from the time the employee returned to work. Do not re-report anything that was reported on the leave of absence transaction.
- If the employee made up prior year contributions, fill out deemed hours and earnings for each year on a separate line on the ET-4560 and process a Prior Year transaction for each year the employee made up prior year contributions. Refer to the USERRA Checklist (ET-2573) for more information
The employee could choose how much of the contributions they would like to pay during the time limits under USERRA for making up contributions and can change their minds. Report only the contributions the employee made up.
Determining Deemed Earnings
Deemed earnings are the amount of earnings the employee normally would have received if they had been actively working. Deemed earnings are determined by taking the contribution amount that the employee made up and dividing it by the contribution rate.
For example, an employee goes on military leave in 2019. They return to work and make up a total of $500 in employee contributions. The employer’s calculations would look like the following:
Divide by 2019
When the employer processes the transaction (termination or annual) for the employee, the employer will enter the following:
- Earnings: $7,633.59
- Employee Contributions: $500.00
- Hours: (all the hours the employee would have had)
Note: Calculations may be different if the employer pays a part of the employee contributions due to a collective bargaining agreement. Please contact your WRS case manager with any questions.
For More Information:
Employer Training on USERRA protocols including webinars and related material can be found on the ETF employer training page.
Please refer to chapter 22 of the Wisconsin Retirement System Administration Manual (ET-1127) or contact ETF’s employer Communication Center with questions at 1-877-533-5020.