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Date: November 21, 2008   
Bulletin Number: CU-354
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Subject

Prepaid Legal Service Benefit for CUNY Employees

Purpose

To explain processing of the Prepaid Legal Service Benefit for tax purposes for the 2008 calendar year.

Background

In accordance with the Internal Revenue Code, Section 61, it is required that the value of employer-funded group legal service benefits be considered as reportable income for each covered employee.  Therefore, the value of this benefit will be added to the employee’s earnings and reflected on the 2008 W-2 Statement.

Affected Employees

Employees represented by District Council 37 in the bargaining units listed below who reside within the following zip codes, receive a paycheck or direct deposit advice statement dated November 20, 2008, and did not receive the benefit payment in October 2008.

New York City

Zip Codes

Brooklyn

112XX

Bronx

104XX

Queens

110XX, 111XX, 113XX, 114XX

Manhattan

100XX, 101XX, 102XX

Staten Island

103XX

 

 

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

Also affected are all employees who are represented by Teamsters, Local 237 or SEIU, Local 300 in the bargaining units listed below, who receive a paycheck or direct deposit advice statement dated November 20, 2008 and did not receive the benefit payment in October 2008.

Note: Zip code criteria only apply to members of District Council 37.

Effective Date(s)

Paychecks dated December 4, 2008 (Institution).

OSC Actions
 

OSC will automatically apply the Prepaid Legal Service Benefit for the 2008 calendar year.  Listed below are the union, bargaining units, value of the Prepaid Legal Service Benefit and the Earnings Code:

Union

Bargaining Units

Value

Earnings Code

 

 

 

 

District Council 37

SF, SJ, T9, TG, TH, TJ, TK, TL, TM, TO,TP, TR, TU, TX, U3, U6

$107.00

PL3

 

 

 

 

Teamsters, Local 237

SB, SE, SL, SM, SP,ST, SU, SV, SW, SX, SZ, TS, TT

$73.59

PL1

 

 

 

 

SEIU, Local 300

S6

$78.00

PL2

DC 37 has determined that nonresident aliens are eligible to receive this benefit.  OSC has created three new Earn Codes to process the benefit for nonresident aliens who meet the criteria above:

Earn Code

NRA Income Code

XPL

IC 17

YPL

IC 18

ZPL

IC 19



Agency Actions
Notify affected employees.

Control-D Report

Control-D report NPAY771 (Time Entry Payment Report) will list all employees for whom the Prepaid Legal Service Benefit was processed.

Payroll Register and Employee’s Paycheck/Advice
The applicable earnings code and the value will be displayed on the payroll register and the employee’s paycheck stub or direct deposit advice.

Questions
Questions regarding this Bulletin may be directed to the Payroll Deductions mailbox.