Purpose

To notify agencies of the 2018 Year End processing schedule for AC-230s (Report of Check Returned for Refund or Exchange)

Background

To maintain the efficiency of AC-230 processing and ensure accuracy of W-2 reporting for 2018, agencies must submit AC-230s to OSC in accordance with the processing schedule outlined in this bulletin.

Agencies should always forward payroll checks to the appropriate entity as soon as possible. As part of OSC’s Uncashed Payroll Check Outreach, any paychecks issued in 2017 that are not cashed, reversed or reissued will be turned over to the Office of Unclaimed Funds in March 2019. Outreach to employees with uncashed paychecks issued in 2017 is underway.

Processing Dates

Paychecks issued prior to September 27, 2018 are due immediately.

Processing Rules for Returning Checks

In accordance with the instructions for AC-230 processing, agencies are reminded that payroll checks should not be returned to OSC if either of the following situations apply:

• The employee is still actively employed by any State agency.
• The employee is due any regular and/or lump sum payments that are equal to or exceed the amount to be returned.

Agencies must email [email protected] to obtain prior approval to submit an AC-230 for a situation that warrants making an exception to the above.

Agency Actions

Agencies must be diligent in their efforts to submit AC-230s timely. The NPAY539 (Non-Negotiated Payroll Checks) Control-D report, as described in Payroll Bulletin No. 908 (Non-Negotiated and/or Undeliverable New York State Payroll Checks) was created as a tool for agencies to identify outstanding checks and take appropriate action.

Questions:

Questions regarding this bulletin may be sent to the Payroll Deduction Mailbox.