Purpose

To provide agencies with information regarding the taxation and reporting of Certification and Licensure Exam Fee Reimbursement (CLERF) Program recipients who received these benefits in 2007.

Affected Employees

Employees who participate in the PEF and Management Confidential Certification and Licensure Exam Fee Reimbursement Program administered by the Governor's Office of Employee Relations

Effective Date(s)

Administrative paychecks dated November 28, 2007
Institution paychecks dated December 6, 2007

OSC Actions

OSC received and processed the file from GOER using Earn Code FRB in Time Entry transactions for all recipients of the CLEFR Program for calendar year 2007. Fringe Benefit and the amount will appear on the employee’s paycheck stub or direct deposit advice statement. OSC will withhold Social Security, Medicare, State and local taxes. No Federal income tax will be withheld.

Communication to Affected Employees

A letter was sent by the Governor’s Office of Employee Relations to the affected employees explaining the tax rules and describing how the CLEFR amounts will be displayed on the employee’s paycheck stub or direct deposit advice statement.

Agency Actions

No agency action required.

Questions

Questions regarding this bulletin may be directed to the Payroll Deduction mailbox.