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Date: February 9, 2006 Bulletin Number: 621
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Subject

Involuntary Deductions for Unemployment Insurance Owed

Purpose

To provide information to agencies on the use of Deduction Code 433, Unemployment Insurance Owed. This bulletin supersedes Payroll Bulletin P-630, dated November 14, 1989.

Affected Employees

Employees who have received an overpayment of unemployment insurance benefits, as determined by the New York State Department of Labor.

Effective Date(s)

Immediately

Background

Involuntary payroll deductions for unemployment insurance owed to the State were implemented in 1989, under the terms of an agreement between the New York State Department of Labor and the Office of the State Comptroller.

If the New York State Department of Labor determines that an employee of the State of New York has received an overpayment of unemployment insurance benefits, an involuntary payroll deduction may be initiated. Deduction Code 433, Unemployment Insurance Owed, is used for this purpose. This code can only be used by an agency when its use is authorized by the New York State Department of Labor. Agencies may take action to initiate, change or end the deduction only when instructed to do so by the NYS Department of Labor or OSC. This is an involuntary deduction, and it cannot be canceled upon employee request.

Department of Labor Actions

The Department of Labor will instruct the agency to initiate this deduction. The notice will include the employee’s name, Social Security number, the total amount due, the amount to be deducted from each check, and the check date to commence the deduction.

Agency Actions for New Requests

1. Upon receipt of the notice from the Department of Labor, enter a deduction record for the employee in PayServ, using Deduction Code 433.
2. For Effective Date, enter the first day of the pay period for the check date the deduction is to start.
3. Enter the biweekly deduction as the Flat Amount.
4. Enter the total amount due as the Goal Amount. The deduction will automatically stop when the Goal Amount is reached.
5. Save the transaction.6. Advise the employee of the total amount due, the amount of each deduction, and the date the deduction will start, and provide the employee with a copy of the letter supplied by the Department of Labor.

 

Agency Actions for Cancellations and Changes

If a cancellation is received from the Department of Labor, insert a new row to end date the deduction. The effective date and end date inserted must be the first day of the next pay period available to stop the deduction.

If a change is received from the Department of Labor, insert a new row using the first day of the next pay period as the effective date. The Department of Labor will provide agencies with the new Goal Amount and the new biweekly deduction amount.

The agency must enter the new Goal Amount and remove any goal balance in the Goal Balance field either by highlighting the information in the fields and pressing the delete key or by spacing this field out on the panel. Agencies must verify the data entered to the form from the Department of Labor and save the transaction.

Questions

Questions regarding this bulletin may be directed to the Payroll Deduction mailbox.
Employee questions should be directed to the Department of Labor at (518) 457-1524.