NYS Comptroller Seal  

Bureau of State Payroll Services

Date: October 4, 2002

Bulletin No. UCS-57

Subject Member Health Club Taxable Reimbursement Reporting
Affected Employees Member Health Club Taxable Reimbursement Reporting
Effective Date Checks dated October 23, 2002
Background A new program has been established by the City of New York Management Benefit Fund (MBF) retroactive to January 1, 2001.

This program will reimburse MBF eligible employees up to $750 each calendar year for participating in an organized health club.

Members will be eligible for reimbursement after exercising a minimum of five times a month for six consecutive months. A Member who files a claim after every six-month period, will be reimbursed up to a maximum of $375. Claims are filed with the Management Benefits Fund and the benefit will be paid directly to the employees by the Fund.

This benefit will be taxable income in the year in which the payment is received and will be reported on employee's year-end W2.
Note: The amount reported is not included in the gross but is added to the biweekly gross for the purpose of the tax calculation and tax payment. The amount is subject to Federal, State, Local, Social Security and Medicare taxes.
OSC Actions OSC has established a new Earnings Code HCR, Health Club Reimbursement, which will be used by agencies to report the taxable value of the Health Club Reimbursement payment.
Agency Actions The City of New York Management Benefit Fund will notify UCS of the payment amounts and the affected employees. The agency must submit the earn code HCR in the Time Entry panel using the following procedures:
Earning Begin Date: First day of the 6 month period to be reimbursed
Earning End Date: Last day of the 6 month period to be reimbursed
Earn Code: HCR
Amount: Enter the taxable value of the Health Club Reimbursement payment.
Questions Questions on eligibility should be directed to the Management Benefit Fund, at 212-306-7392.

Questions regarding Time Entry transactions should be directed to your Payroll Auditor.