Pursuant to C.R.S. §24-51-1402(4) and C.R.S. §24-51-1603(3), PERA-covered employers must remit 401(k) and 457 contribution reports, and the full amount of contributions due to PERA, within five business days of the date employees are paid. If contributions are not remitted within the required timeframe, the employer is assessed interest on the contributions pursuant to PERA Rule 14.30 and PERA Rule 17.40.
For employers paying via ACH, provided the payment is scheduled for the next available (default) ACH date on the 5th business day (up to 11:59 p.m.) the file is considered on time. Often the next available ACH date is 1 to 3 business days in the future.
Employers paying via wire transfer must initiate the transfer through their financial institution. The wire transfer must be received by PERA no later than the 5th business day. Employers may need to work with their bank to ensure they have enough time to process the request.
Federal banking holidays and days when PERA offices are closed extend the five business-day submission deadline. Days when the employer is closed do not extend the submission deadline.
Under IRS and U.S. Department of Labor guidelines for these types of defined contribution plans, if the employer fails to report and fund contributions in the required time frames, the employer becomes responsible for funding lost earnings to their contributing employees. Additionally, the Plan may collect reasonable administration fees for application of this correction. PERA assesses these fees through late penalty billings.
We encourage submission of all required components of the contribution report within the specified timeframe to avoid incurring any late penalties.