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Date: November 20, 2009

Bulletin Number: CU-391

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Subject

Prepaid Legal Service Benefit for CUNY Employees

Purpose

To explain processing of the 2009 Prepaid Legal Service Benefit for tax purposes.

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 2009 W-2 Statement.

Affected Employees

Employees represented by District Council 37 in the bargaining units listed below who reside within the following zip codes:

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.  

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

Effective Date(s)

Paychecks dated December 17, 2009 (Institution).

OSC Actions

OSC will automatically apply the Prepaid Legal Service Benefit for the 2009 calendar year for employees in a status of Active or Paid Leave who received a paycheck in 2009.  Listed below are the unions, bargaining units, values of the Prepaid Legal Service Benefit and the Earnings Codes:

Union

Bargaining Units

Value

Earnings Code

 

 

 

 

District Council 37

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

$107.00

PL3

 

 

 

 

Teamsters, Local
237

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

$80.95

PL1

 

 

 

 

SEIU, Local 300

S6

$78.00

PL2

*Excluding SL Hourly job code 016366

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

Earn Code

NRA Income Code

XPL

IC 17

YPL

IC 18

ZPL

IC 19


Agencies should 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 Tax and Compliance mailbox.