Date: June 29, 2000
Bulletin No. 171
|Subject||Increase in Maintenance Rates and Rules for Determining Taxable Status of Maintenance Deductions|
|Purpose||To provide procedures for reporting maintenance deduction changes and to explain procedures for determining the taxable status of maintenance deductions|
|Affected Employees||Employees with taxable or non-taxable maintenance deductions. This does not affect SUNY employees in bargaining units 08 and 13. A separate bulletin will be issued to provide instructions for SUNY agencies.|
In accordance with the Budget Policy
Reporting Manual, Revised Item B-300, issued on April 25, 2000, maintenance
rates were increased beginning Period 27, March 23, 2000 for Institution
agencies and Period 1, March 30,2000 for Administration agencies.
The maintenance rate changes for these agencies will be effective in July.
The Office of the State Comptroller will produce listings to identify employees in each agency who currently have maintenance deductions. These listings will be distributed in a separate mailing.
Since the increase to maintenance rates
is retroactive, adjustments can be processed over multiple pay periods.
These adjustments can be made by increasing the new bi-weekly maintenance
deduction amount by the amount of the adjustment. It will be necessary to
restore the new bi-weekly amount after the retroactive adjustment has been
collected. To report changes to maintenance deductions, use the path
Start, Compensate Employees, Maintain Payroll Data U.S., Use, General
Deduction Data Agency, Update/Display.
The Budget Policy Reporting Manual,
revised item B-300 is available from the following Internet address:
If you are unable to electronically access this information, please call (518) 474-0429 to request a hard copy.
|Determining Taxability of Maintenance Deductions||
These rules are to be used by payroll
officers in determining whether the maintenance charges deducted from
employee wages are classified as taxable or non-taxable for payroll
purposes. The State, as the employer, has a responsibility to report these
amounts to the taxing authorities.
Section 119 of the Internal Revenue Code states that all of the following conditions must be met before meals and/or lodging charges can be classified as non-taxable and, therefore, excludable from gross income:
Section 119 offers the following clarification:
All three tests of Section 119 of the Internal Revenue Service code must be met for an employee’s maintenance deduction for lodging to be classified as non-taxable. In general, most employees occupying State owned housing would meet the first test of Section 119, that the lodging be on the grounds of the employer’s place of business. The two additional tests are clarified as follows.
|Questions||Questions regarding this bulletin may be directed to the Payroll Deductions mailbox.|