NYS Comptroller Seal  

Bureau of State Payroll Services

Date: February 27, 2001

 Bulletin No. 237 

Subject New Deduction Code (420) for the New York Dependant Care Employer Contribution
Purpose To explain the establishment of a new non-taxable benefit. The employer maximum contribution is based on the employee’s salary and bargaining unit as determined by union negotiated contracts. The following maximum amounts will be applied:

Up to $35,000 $400
$35,001 - $55,000 $300
Over $55,000 $200
Affected Employees Employees in Bargaining Units 02, 03, 04, 05, 06, 08, 13, 18, 46, 47, 52, 66, 67, 76, 77, 79 who enrolled for the benefit.
Effective Date Administration checks dated February 28, 2001 and Institution checks dated March 8, 2001
OSC Automatic Processing OSC will process a file from Fringe Benefits Management Company to report the amount of the non-taxable benefit. The amount reported on this file will appear on the employee’s paycheck and W-2 for tax purposes. If an employee also has a deduction for Dependant Care (code 428), OSC will decrease the goal amount for the Dependant Care by the amount of the employer share contribution submitted on the file.

For example: An employee has elected a yearly contribution of $5,000.00 for Dependant Care. The employee’s annual salary is $37,000.00. Based on the chart above, the maximum deduction for code 420 would be $300.00. The goal amount for the Dependant Care deduction (code 428) would be reduced by the $300.00 and the employee’s goal amount for Dependant Care will be updated to $4,700.00. The total maximum deduction for dependant care from the employee’s paycheck for the calendar year will be $4,700.00.

Agency Action Notify affected employees
Questions Questions may be directed to Regina Pollack, Program Director of the Dependant Care Advantage Account at (518) 473-8091.