logo

Date: November 9, 2017

Bulletin Number: 1612

line
Subject Certification, Licensure and Exam Fee Reimbursement (CLEFR) for 2017 Administered by the Governor’s Office of Employee Relations (GOER), Public Employees Federation (PEF), and Civil Service Employees Association (CSEA)

Purpose To inform agencies of the processing of the taxable fringe benefit CLEFR for 2017.

Legal Reference Pursuant to Internal Revenue Code Section 61, certain fringe benefits such as the Certification, Licensure and Exam Fee Reimbursement are considered taxable income.

Affected Employees Employees who participated in the PEF or CSEA Certification, Licensure and Exam Fee Reimbursement Program.

Effective Date(s) Administration paychecks dated November 29, 2017.
Institution paychecks dated December 07, 2017.

OSC Actions OSC will process CLEFR transactions as submitted by GOER and CSEA.
 
The amount will be added through Time Entry using the earn code CFR. This amount is used for reporting and tax withholding purposes only and does not increase the employee’s compensation.

Tax Information Certification, Licensure and Exam Fee Reimbursement is considered a taxable fringe benefit.  As such, it is supplemental taxable income, will be added to the employee’s taxable gross wages for tax withholding purposes, and is subject to employment and income taxes.

Federal, State and New York City income tax withholding will be calculated using the Aggregate method.  Yonkers income tax withholding will be calculated using the Flat Rate method.  Yonkers Flat Rate Withholding is 1.61135% for Yonkers residents and 0.50% for Yonkers nonresidents.

The CLEFR amount will be reported on the employee’s Form W-2 in box 14 under code FRB.

Payroll Register and Employee’s Paycheck/Advice

The Earnings Code CFR and the amount will appear on the employee’s paycheck or direct deposit advice statement.

Communication to Affected Employees PEF

A letter will be sent by the Governor’s Office of Employee Relations to affected PEF participants informing them of the tax implications. 

CSEA

CSEA participants are informed of the tax impact upon enrollment in the program.

Questions Questions regarding this bulletin may be emailed to the Tax and Compliance mailbox.