Date: October 29, 2013

Bulletin Number: UCS-199



Prepaid Legal Service Benefit for Unified Court System (UCS) Employees.


To inform agencies of the processing of the 2013 Prepaid Legal Service Benefit.

Affected Employees

Employees as identified below who are represented by District Council 37, and Communication Workers of America.

 Employees represented by District Council 37 in bargaining unit SK who reside within the zip codes identified below and employees represented by Communication Workers of America (CWA), Local 1180 in bargaining unit SD.

New York City

Zip Codes






110XX, 111XX, 113XX, 114XX


100XX, 101XX, 102XX

Staten Island




New York State

Zip Codes

Nassau County

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

Suffolk County

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

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

Effective Date(s)

Paychecks dated November 20, 2013 (Administration).


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 2013 Form W-2 (Wage and Tax Statement).

OSC Actions

OSC will automatically apply the Prepaid Legal Service Benefit for the 2013 calendar year for employees who were in a status of Active or Paid Leave and received salary from a position in Bargaining Unit SK or SD at any time during calendar year 2013. 

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


Bargaining Units


Earnings Code





District Council 37








CWA, Local 1180




District Council 37 has determined that nonresident aliens are also 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:

Earnings Code

NRA Income Code


IC 17


IC 18


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 regarding this bulletin may be e-mailed to the Tax and Compliance mailbox.