Payroll System Replacement Project

Subject: 1998 W-2 Year End Processing Bulletin No. 61
Date: 12/22/98
Year-End Processing Schedule

Employee copies of 1998 W-2 forms will be prepared by the Office of the State Comptroller (OSC) and mailed to the agency payroll units for distribution before February 1, 1999.

W-2's for the 1998 calendar year will include earnings paid on checks dated:

Administration 1/7/98 through 12/23/98
Institution 1/1/98 through 12/31/98

An employee who has worked for more than one State agency during the year, in most circumstances, will receive one W-2. Workers’ Compensation supplemental payments will continue to be included in the W-2 statements.

When possible, lost time should be processed in a subsequent payroll period though time entry. AC230's should only be used for complete refunds or if no other options are available.

In order that the refunds for the checks of 1998 be properly reflected in the W-2 issued to each employee, the following deadlines must be adhered to:

A. For Institution agencies, submit AC-230's so that they will be received in the Office of the State Comptroller no later than January 4, 1999.

B. For Administration agencies, submit AC-230's so that they will be received in the Office of the State Comptroller no later than December 28, 1998.

If AC-230's are not received by these deadlines, the agency payroll unit wll be responsible for replacing the original W-2's with corrected W-2 forms.

1998 W-2 Form

The information which will appear on the W-2 is described below:

Box 1 Wages, Tips and Other Compensation
                Taxable wages are reported in this box.

Box 2 Federal Income Tax Withheld
                The total federal income tax withheld is in this box.

Box 3 Social Security Wages
                The wages subject to Social Security taxes, not to exceed
                $68,400.00.

Box 4 Social Security Tax Withheld
                The Social Security tax deducted, not to exceed $4,240.80.

Box 5 Medicare Wages
                All wages subject to Medicare taxes. There is no salary cap on
                Medicare wages.

Box 6 Medicare Tax Withheld
                The Medicare tax deducted.

Box 9 Advance EIC Payments
                The total earned income credit paid to employee.

Box 10 Dependent Care
               The total dependent care deductions.

Box 12 Taxable Fringe Benefit
                The taxable fringe benefit amount. This amount is included in Box 1,
                and will be the sum of the value of personal use of a State vehicle,
                transportation fringe benefits (parking) in excess of IRS excludable
                amounts, and pre-paid legal expense.

Box 13 See Employee Notice
                If there is an amount in Box 13, there will be a letter code next to it.
                The codes are as follows and are also explained on the reverse of the
                W-2.

E - Section 403(b) contributions
G - Section 457 contributions
P - Excludable moving expense reimbursements
Q - Military employee basic quarters, subsistence, and combat zone compensation

Box 14 Other
              
If there is an amount in Box 14, there will be a code next to it. The
               codes are described below and are also explained on the reverse of the
               W-2.
              (NOTE: Multiple W-2s will be issued for employees with more
              than 4 items in Box 14.)

    All of these amounts except 414(H) contributions, WC Excluded
    Amount and CUNY IRC section 125 amounts are included in
    Box 1. The 414(H) contributions are not included in Box 1,
    but must be reported for State and local taxes.

UTA Uniform/Tool Allowance
EXP Taxable Expense - This code is used for payments of "lieu of expenses", non overnight meal allowance, excess per diem reimbursements or personal car mileage.
EDA Educational Assistance
414(H) All non-taxable Tier 3 and Tier 4 contributions made to New York State or City retirement system or to TIAA/CREF. This amount must be reported for state and local taxes. If there is a minus sign (-) with this amount, it can be disregarded for state and local taxes since the taxes have already been paid.
TXP Taxable transportation fringe benefits (parking) in excess of IRS excludable amounts. This amount is part of the taxable fringe benefit amount in Box 12.
PPL Pre-Paid Legal expense. This amount is part of the taxable fringe benefit amount in Box 12.
IMP Imputed Income - The value of the employers’ contributions for employees with Domestic Partner Health Insurance.
WCX Workers’ Compensation excluded amount. This is the amount that has been awarded by NYS Workers’ Compensation Board, which is excluded from the gross pay for the current year for a work related injury.
IRC125 City University of New York (CUNY) employees only. This amount includes Dependent Care, Flexible Spending Account, and Non-Taxable Health Insurance and is excludable for Federal Income Tax only and is not included in Box 1. This amount must be reported for Sate and Local Taxes.

Box 15 State

      A two-letter code from the list below indicating which State
      income taxes were withheld.

NY - New York

IL Illinois

DC District of Columbia

Box 18 State Income Tax
                The total State tax withheld is reported in this box.

 Box 19 Name of Locality
                Name of locality if local income tax was withheld for New York
                City and/or Yonkers.

Box 21 Local Income Tax
                The total local tax withheld. If both, New York City tax withheld is on
                top line and Yonkers tax withheld is directly below in the same box.

Employer’s Name and Address

This information will be printed on all copies of the W-2 and include the State’s Federal ID # (14-6013200), City University‘s Federal ID # (13-3893536), NYS Environmental Facilities Corp.’s Federal ID # (14-1499804), NYS Science and Technology’s Federal ID # (14-1491323), SUNY Construction Fund’s Federal ID # (14-6019701) or Industrial Exhibit Authority Federal ID # (16-1332929).

Corrected and Reissued W-2's

Instructions will be provided with the W-2 statements.

 Questions

Questions concerning W-2 distribution should be directed to Eileen Cooper at (518) 473-1989.

Questions concerning the AC230 process should be directed to Chris Busold at (518) 474-3538.