Purpose
The purpose of this bulletin is to provide agency instructions for new overtime earnings codes to be used for Time Entry overtime payments.
Affected Employees
Employees who are overtime eligible and in the Agency Police Services Unit (APSU) – BU31 are affected.
Background
Chapter 55 of the Laws of 2021 which implements the 2015-2019 Agreement between the State of New York and the Police Benevolent Association of New York State, Inc (PBA) provides for the change in the calculation of overtime for the Agency Police Services Unit (APSU), BU31.
Prior to the 2015-2019 agreement, overtime was calculated using the factor of .00075 based on a denominator of 2,000 hours. The new agreement changes the overtime factor used in the calculation of overtime. Overtime earned on or after 04/04/2019 (Administration) will be paid using the overtime factor of .00072, based on a denominator of 2,080 hours.
Effective Dates
The retroactive overtime denominator adjustments will be systematically processed in Administration Pay Period 6L, paycheck dated 07/07/2021.
Note: If an employee was previously in BU31, will need to have their OT adjusted, and is currently in a different position on the Institution cycle, the adjustment will be processed in the 07/15/2021 paycheck.
Eligibility Criteria
Employees in BU31 who have overtime earnings on or after 04/04/2019 will be paid using the new overtime factor per the 2015-2019 agreement.
OSC Actions
OSC has updated or created Earning Codes to be used to report overtime and overtime related payments for employees in BU31 as indicated below:
| Replaces | Associated Retro Code | Replaces | |
|---|---|---|---|
| OCS- OT for Annual 2080 | OTA – OT for Annuals | R2C – RETRO Overtime 2080 | ROA – Retro OT - Annuals |
| ORC- Overtime Recall Annual 2080 | RCL – Recall Overtime | R2R – Retro OT Recall 2080 | RRO – Retro Recall Overtime |
| OWC- OT Waiver for Annual 2080 | OTW – Overtime Waiver | RWC –Retro OT Waiver 2080 | ROW – Retro Overtime Waiver |
| C72- Covid-19 OT for Annuals-2080 | C75 – Covid-19 Overtime for Annuals | R72 – Retro Covid-19 OT for Ann-2080 | R75- Retro Covid-19 OTA for Annuals |
| ORU- Recall Standby OT APSU | ROC – Recall Standby OT Classified | R2U – Retro Recall SBY OT APSU | RRC – Retro Recall Standby OT Class |
| SCC- Standby OT Adjust - APSU | SOC- Standby OT Classified | RS0- Retro Standby OT Adjust APSU | RSO – Retro Standby OT Classified |
OSC will automatically recalculate the following overtime earnings using the new factor of
.00072:
- For Earnings Codes OTA, OTW, RCL, ROC, and SOC with earnings dates on or after 04/04/2019 (Admin) through 06/09/2021, a single adjustment will be entered into Time Entry using the Adjustment Code ARO (Adj Retro Raise for OT and RCL)
- For Earnings Code C75 with earnings dates on or after 03/08/2020 through 06/09/2021, a single adjustment will be entered into Time Entry using the Adjustment Code ARC (Adj Retro Raise for C19 OT).
Agency Actions
Beginning in Administration Pay Period 6L
To report Overtime earnings effective beginning 04/04/2019, the agency must submit the appropriate New Earnings Codes (as listed in the OSC Action section above) in the Time Entry page using the following procedures:
| Earnings Begin Date: | Effective date started |
|---|---|
| Earnings End Date: | Effective date ended |
| Earn Code: | Enter appropriate code |
| Hours/Units/Amount: | Number of Hours/Units/Amounts, as applicable |
Agencies must use the overtime factor of .00072 in the calculation when submitting any payments using override Earnings Codes such as OTT and OTO.
Tax Information
These monies are taxable income and are subject to all employment and income taxes. These monies will be included in the employee’s taxable gross and will be reported on the employee’s Form W-2.
The adjustments (ARC and ARO) are supplemental taxable income and will be included in the employee’s taxable gross subject to all employment and income taxes.
Federal, State, and New York City income tax withholding will be calculated using the Aggregate method. Yonkers income tax withholding will be calculated using the Flat Rate method (1.61135% for Yonkers residents and 0.50% for Yonkers non-residents).
Special Wage Payments for Individuals Who Filed for Retirement Social Security Benefits
Per Internal Revenue Service Publication 957, OSC will be reporting retro payments made to individuals who have filed for Social Security benefits to the Social Security Administration (SSA).
As PayServ does not include this information, OSC will be mailing a Request for Special Wage Payment Report to inactive individuals who are 62 or older in the calendar year and to active employees with the New York Retiree Indicator checked in Modify a Person who receive the retroactive payment. Recipients of this mailing will be asked to fill out the request and return it to OSC for inclusion on the Special Wage Payment report to SSA. This report will be submitted to SSA after the close of the 2021 tax year.
It is important that agencies ensure the New York Retiree Indicator box is checked for rehired retirees. Please see Payroll Bulletin No. 1728 for further details on the New York Retiree Indicator box.
Payroll Register and Employee Paycheck/Advice
All retroactive adjustments will be displayed on the Payroll Register using the appropriate Earnings Code and the amount paid and will be displayed on the employee’s paycheck stub or direct deposit advice using the appropriate Earnings Description and the amount paid unless the number of earnings codes exceeds 13. Agencies should utilize Locked Query LQ_PCD_PAYCHECK_EARNINGS_BY_ID to identify a complete list of regular earnings and retroactive adjustments if there are more than 13 earnings codes.
Undeliverable Checks
When a valid payroll check is undeliverable due to the agency’s inability to locate the employee, the agency should follow the Agency Actions identified in Payroll Bulletin No. 1786 - Non-Negotiated and/or Undeliverable New York State Payroll Checks.
Checks issued to eligible employees who are now deceased should be returned with a completed Next of Kin Affidavit (Form AC 934-P), original death certificate and a Report of Check Exchange (Form AC 1476-P). If a Next of Kin Affidavit has been previously submitted for a deceased employee’s payroll check, OSC will accept a photocopy of this form along with a new Report of Check Exchange.
Questions
Questions regarding this bulletin may be directed to the Payroll Earnings mailbox.