(1) As soon as administratively possible, but in no event later than 60 days after the end of each pay period, a participating employer shall report and certify to the office:

1. (a) the eligibility for service credit accrual of:

   1. (i) all current members;
   2. (ii) each new member as they begin employment; and
   3. (iii) any changes to eligibility for service credit accrual of each member.
2. (b) the compensation of each current member eligible for service credit; and
3. (c) other factors relating to the proper administration of this title as required by the executive director.

(3) A participating employer shall be liable to the office for:

1. (a) any liabilities and expenses, including administrative expenses and the cost of increased benefits to members, resulting from the participating employer's failure to correctly report and certify records under this section;
2. (b) a penalty equal to $250 or 50% of the total contributions for the member for the period of the reporting error, whichever is greater; and
3. (c) attorney fees.