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Date: December 28, 2004 Bulletin Number: 533
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Subject

April 1, 2004 Salary Increase and January 1, 2004 Employee Taxability Changes for the Division of Military and Naval Affairs (DMNA) State Active Duty Payroll

Purpose
To inform DMNA of the payment procedures for the April 1, 2004 Salary Increase and the new Earn Codes created to pay employees. Two of these new codes are used to report earnings that are exempt from NYS tax.

Affected Employees
Employees in the Division of Military and Naval Affairs State Active Duty Payrolls, Agencies 01071 and 01072.
Background
Pursuant to Chapter 418 of the Laws of 2004, each member of the militia ordered into active military service shall receive the same pay and allowances as received by corresponding members of the armed forces, or $125.00 per day, whichever is greater.

Effective Date(s)
Salary Increases and adjustments will be reflected in checks dated January 3, 2005.

OSC Actions- New Earn Codes

Three new Time Entry Earn Codes have been created by OSC to be used to pay employees’ regular earnings. The Earn Codes FNT and AFN are effective 1/1/04 and will be used to report earnings that are now exempt from New York State tax liability.

FNT (Fee State Exempt DMNA): To be used to report employees’ regular earnings that are exempt from State tax. Earn Code FMN must still be used to report regular earnings that are subject to State tax.

AFN (Adjust FEE State Exempt DMNA): To be used to adjust regular earnings that are exempt from State tax.
AFT
(Adjust Fee DMNA): To be used instead of ADJ to report adjustments to regular earnings that are subject to State tax (FMN).

Agency Actions

The agency must submit Job Request transactions to pay the Salary Increase using the Action/Reason of Pay Rate Change/CRT (Change Rate) effective 4/01/04 or the date the employee was hired, if after 4/01/04.

The agency must also submit Job Request transactions for any subsequent rows on the employee’s Job Data record using the Action/Reason of Pay Rate Change/CRT (Change Rate).

Retroactive adjustments will not be paid automatically by the payroll system. The agency must calculate and submit adjustments on the Time Entry page to pay the retroactive increase using the appropriate Earn Codes above.

Employee Tax Filing for 2004
OSC will provide DMNA with a letter to be mailed to employees advising of their New York State non-taxable earnings for 2004. Employees will need the wage information provided in this letter when filing their 2004 NYS tax return to determine the amount of the NYS wage reduction.

Questions

Questions regarding Salary Increases may be directed to your Payroll Auditor. Agency questions regarding taxes may be directed to the Payroll Deductions mailbox.