logo

Date: October 13, 2016

Bulletin Number: CU-552

line
Subject Prepaid Legal Service Benefit for CUNY Employees

Purpose To inform agencies of the processing of the 2016 Prepaid Legal Service Benefit.

Affected
Employees

Employees, as identified below, who are represented by District Council 37, Teamsters Local 237, and SEIU Local 300.

Employees represented by District Council 37 in Bargaining Units CC, CD,  SF, SJ, T9, TG, TH, TJ, TK, TL, TM, TO, TP, TR, TU, TW, TX, U3, or U6 who reside within the following zip codes:

New York City

Zip Codes

Brooklyn

112XX

Bronx

104XX

Queens

110XX, 111XX, 113XX, 114XX

Manhattan

100XX, 101XX, 102XX

Staten Island

103XX

New York State

Zip Codes

Nassau County

110XX, 115XX, 116XX, 117XX, 118XX

Suffolk County

06390 & 117XX (except 11719, 11764, 11778, 11786, 11789, 11792)

Westchester County

105XX, 106XX, 107XX, 108XX

Rockland County

10901, 10911, 10913, 10920, 10923, 10927, 10931, 10952, 10954, 10956, 10960, 10962, 10964, 10965, 10968, 10970, 10974, 10976, 10977, 10980, 10982, 10983, 10984, 10986, 10989, 10993, 10994

Employees represented by Teamsters Local 237 in Bargaining Units SB, SC, SE, SL, SM, SP, ST, SU, SV, SW, SX, SZ, TS, or TT.

Employees represented by SEIU Local 300 in Bargaining Unit S6.

Note: The Zip Code criteria is only applicable to members of
District Council 37.

Background Pursuant to Internal Revenue Code Section 61, certain fringe benefits including employer-funded group legal service benefits are considered taxable income.  Therefore, the value of this benefit will be added to the employee’s taxable gross wages, for tax withholding purposes, and reflected on the 2016 Form W-2 (Wage and Tax Statement).

Effective Date(s)

Paychecks dated November 10, 2016 (Institution).
OSC Actions OSC will automatically apply the Prepaid Legal Service Benefit for the 2016 calendar year for employees who were in a status of Active or Paid Leave and received salary from a position in one of the designated bargaining units at any time during calendar year 2016. 

Listed below are the unions, bargaining units, values of the Prepaid Legal Service Benefit and the Earnings Codes:

Union

Bargaining Units

Value

Earnings Code

District Council 37

CC, CD, SF, SJ, T9, TG, TH, TJ, TK, TL, TM, TO, TP, TR, TU, TW, TX, U3, U6

$107.00

PL3

Teamsters Local 237

SB, SC, SE, SL, SM, SP, ST, SU, SV, SW, SX, SZ, TS, TT

$102.47

PL1

SEIU Local 300

S6

$85.00

PL2

District Council 37 has determined that nonresident aliens are eligible to receive this benefit.  The Earnings Codes used to process the benefit for nonresident aliens who meet the criteria stated above are as follows:

Earn Code

NRA Income Code

XPL

IC 17

YPL

IC 18

ZPL

IC 19

OSC will set up Social Security and Medicare tax deficiency deductions for any employee who is inactive at the time the benefit is applied.  As a result, the deficiency will automatically be recovered through payroll deduction should the employee later return to the payroll.

Control-D Report Control-D report NPAY771 (Time Entry Payment Report) identifies all employees for whom the Prepaid Legal Service Benefit was applied.

Agency Actions

Agencies should notify affected employees.
Payroll Register and Employee’s Paycheck/Advice The applicable earnings code and associated value will be displayed on the agency’s payroll register and the employee’s paycheck  and/or direct deposit advice.

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