Penalty Fees

Penalty Fees accrue for each business day the report is not at a “Complete” status after the due date.  The penalty fee is based on the number of TRS eligible members reported on the May report for the previous school year. The late fee is not to exceed $1,000 per business day, for each business day that a required employer report is late. There is a cap of $25,000 per report month on the late fees for each report.

Penalty Fees Table:

Beginning with the September 2024 report period, monthly RP and ER reports will fall under a reduced Penalty Fee Grace Period for report completion. The Penalty Fee Grace Period for the completion of the September 2024 payroll reports will be reduced from one calendar month to 21 days. All subsequent report months, October 2024-August 2025, will fall under a 14-calendar day grace period for report completion.

The grace period does not change the due date for reports and TEXNET deposits. Instead, it allows REs extra time to complete reports before penalty fees are assessed. REs are still urged to submit and complete reports by the due date set forth in the Texas Government code.