Purpose
The purpose of this bulletin is to inform agencies of OSC’s automatic processing of the April 2020, 2021, and 2022 Retroactive Increases to Location Pay and Supplemental Location Pay and provide instructions for payments not processed automatically.
Affected Employees
Employees in the Agency Police Services Unit (APSU) – BU31 who meet the eligibility criteria are affected.
Background
Pursuant to the Memorandum of Agreement between the State of New York and the Police Benevolent Association of New York, Inc. (PBANYS) covering the period 04/01/2019 through 03/31/2023 and Chapter 60 of the Laws of 2022, members of the Agency Police Services Unit (APSU – BU 31) are due retroactive increases to Location Pay (LOC) and Supplemental Location Pay (SUP) for 2020, 2021, and 2022.
Effective Dates
The increases to Location pay and Supplemental Location Pay will be paid using the following effective dates and check date:
| Year | Cycle | Effective Date | Check Date |
|---|---|---|---|
| 2020 | Administration | 04/02/2020 | 07/20/2022 |
| 2021 | Administration | 04/01/2021 | 07/20/2022 |
| 2022 | Administration | 03/31/2022 | 07/20/2022 |
Note: If an employee was previously in BU31 and owed a retroactive adjustment and is currently in a different position on the Institution cycle, the employee will be paid the April 2020, 2021, and 2022 retroactive increases to Location Pay and Supplemental Location Pay in the 07/28/2022 paycheck.
Eligibility Criteria
Employees who have received or currently receive LOC or SUP, on or after 04/02/2020 while in the eligible bargaining unit, are entitled to the increase.
Earnings Codes and Payment Amounts
|
|
Earnings Code |
|||
|
|
LOC |
SUP1 |
SUP2 |
SUP3 |
| Current Amount | $1,520 | $1,266 | $1,900 | $2,217 |
| 2020 Amount | $1,550 | $1,291 | $1,938 | $2,261 |
| 2021 Amount | $1,581 | $1,317 | $1,977 | $2,306 |
| 2022 Amount | $1,613 | $1,343 | $2,017 | $2,352 |
1Orange, Putnam, Dutchess counties
2NYC, Rockland, Westchester counties
3Nassau, Suffolk counties
OSC Actions
2020
Location Pay (LOC)
OSC will automatically insert a row to update the Additional Pay page with an effective date of 04/02/2020 to increase the amount of LOC from $1,520 to $1,550 for all employees in BU31 receiving Location Pay.
| Earnings Code: | LOC |
|---|---|
| Effective Date: | 04/02/2020 |
| OT Eff Date: | Same as Effective Date |
| Annual Addl Earnings: | $1,550 |
Supplemental Location Pay (SUP)
OSC will automatically insert a row to update the Additional Pay page, for all employees in BU31 receiving Supplemental Location Pay, with an effective date of 04/02/2020 and increased to the amount as listed in the chart above.
| Earnings Code: | SUP |
|---|---|
| Effective Date: | 04/02/2020 |
| OT Eff Date: | Same as Effective Date |
| Annual Addl Earnings: | Refer to the chart above |
2021
Location Pay (LOC)
OSC will automatically insert a row to update the Additional Pay page with an effective date of 04/01/2021 to increase the amount of LOC from $1,550 to $1,581 for all employees in BU31 receiving Location Pay.
| Earnings Code: | LOC |
|---|---|
| Effective Date: | 04/01/2021 |
| OT Eff Date: | Same as Effective Date |
| Annual Addl Earnings: | $1,581 |
Supplemental Location Pay (SUP)
OSC will automatically insert a row to update the Additional Pay page, for all employees in BU31 receiving Supplemental Location Pay, with an effective date of 04/01/2021 and increased to the amount as listed in the chart above.
| Earnings Code: | SUP |
|---|---|
| Effective Date: | 04/01/2021 |
| OT Eff Date: | Same as Effective Date |
| Annual Addl Earnings: | Refer to chart above |
2022
Location Pay (LOC)
OSC will automatically insert a row to update the Additional Pay page with an effective date of 03/31/2022 to increase the amount of LOC from $1,581 to $1,613 for all employees in BU31 receiving Location Pay.
| Earnings Code: | LOC |
|---|---|
| Effective Date: | 03/31/2022 |
| OT Eff Date: | Same as Effective Date |
| Annual Addl Earnings: | $1,613 |
Supplemental Location Pay (SUP)
OSC will automatically insert a row to update the Additional Pay page, for all employees in BU31 receiving Supplemental Location Pay, with an effective date of 03/31/2022 and increased to the amount as listed in the chart above.
| Earnings Code: | SUP |
|---|---|
| Effective Date: | 03/31/2022 |
| Eff Date: | Same as Effective Date |
| Annual Addl Earnings: | Refer to chart above |
OSC will automatically update any eligible subsequent rows.
Automatic Retroactive Processing
OSC will automatically calculate retroactive adjustments for Time Entry earnings that are calculated by the system that include Location Pay (LOC) or Supplemental Location Pay (SUP)such as Overtime (OCS).
If an employee receives a payment and has worked in more than one agency but has been paid by all agencies in the same Employee Record Number since the effective date of the payment, all retroactive adjustments will be paid in the most current agency.
If an employee receives a payment and has worked in more than one agency and has been paid in more than one Employee Record Number since the effective date of the payment, the retroactive adjustments will be paid in the most current agency of the Employee Record Number in which the payment was made.
Agency Actions
To pay the April 2020, 2021, and 2022 Retroactive Increases to Location Pay and Supplemental Location Pay for Bargaining Unit 31 eligible employees not processed automatically or who return from an authorized leave of absence, the agency must submit the following information on the Additional Pay page using the appropriate Earnings Code:
| Earnings Code: | LOC or SUP |
|---|---|
| Effective Date: | Newly Eligible Date |
| OT Eff Date: | Same as Effective Date |
| Annual Addl Earnings: | Applicable amount from chart in Eligibility Criteria section |
Agency Actions - Retroactive Processing
Reporting Retroactive Adjustments
Time Entry earnings codes that are submitted with an amount will not be adjusted automatically. Therefore, beginning in Administration Pay Period 7L, agencies must report the adjustment amount for earnings codes such as Extra Time Override (EXO).
Correcting an Automatic Retroactive Adjustment
When certain conditions exist in an employee’s record, the automatic retroactive adjustment may be incorrect. Therefore, the agency is responsible for identifying employees who meet the following conditions and, if necessary, submitting the necessary adjustment:
- If an employee has a check returned or exchanged on an AC-230 for dates on or after the effective date of the payment, the payroll system does not consider the AC-230 when calculating the automatic retroactive adjustment.
- If earnings were previously reported using Earnings Code RGS and a date range that exceeded the number of days reported, the system will calculate the adjustment of earnings based on the number of workdays within the range.
- Adjustments for earnings that are calculated automatically, such as OT for Annuals 2080 (OCS), will be calculated incorrectly if the dates previously reported as a single entry on the Time Entry page overlap the effective date of the payment. The system will calculate an adjustment for all earnings reported in a single entry based on the salary in effect on the Earnings End Date.
- For employees who had a change reported on the Job Data page, since the effective date of the payment and the action resulted in an overpayment of earnings, the automatic negative retroactive adjustment may not have been processed because the overpayment was either not recoverable or was recovered using an overpayment earnings code or an AC-230. In this case, the negative retroactive adjustment may be re-generated when the payment is processed. OSC will turn off (not process) the automatic negative adjustment for these employees since in most cases these overpayments were either not recoverable or recovered using another method.
If an overpayment of earnings is identified after the automatic payment is processed but before the paycheck is received by the employee, the employee must be notified of the overpayment and the adjustment that will be reported in a subsequent pay period.
Submitting an Adjustment
When an adjustment is needed for COVID-19 overtime such as CVO, ARC must be used. When an adjustment is needed for non-COVID-19 related overtime or recall such as OTT, ARO must be entered. Please refer to Payroll Bulletin 1893 for more information. Agencies must continue to use AJR for all other override Time Entry Earnings Codes requiring a manual adjustment that are a result of a retro salary increase.
To process a retroactive adjustment or correct an automatic retroactive adjustment, agencies must submit the following information on the Time Entry page or the Time Entry Interface (NPAY502) using the Earnings Code AJR, ARC or ARO:
| Earnings Begin Date: | The first date included in the adjustment |
|---|---|
| Earnings End Date: | The last date included in the adjustment |
| Earn Code: | AJR, ARC or ARO |
| Amount: | Amount to be adjusted |
| Comments: | An explanation of the adjustment |
Control-D Report Available After Processing
The following Control-D report will be available after processing of the automatic increase:
NHRP703 Mass Salary Additional Pay Report
This report identifies all employees receiving an automatic increase for the April 2020, 2021, and 2022 Retroactive Increases to Location Pay (LOC) and Supplemental Location Pay (SUP). Fields on this report include EmplID, Employee Record Number, Employee Name, Earn Code, Grade, Salary Plan, Bargaining Unit, and Additional Pay Amount.
General Deductions
All general deductions for employees whose Payroll Status is Terminated, Retired, or Deceased will be automatically canceled by OSC with the exception of percentage based dues and the following:
| Code | Description |
|---|---|
| 406 | Strike/Discip Fine |
| 410 | Health Care Spending Account |
| 416 | Deferred Comp |
| 420 | NY Dependent Care Contribution |
| 425 | Repay State Loans/Debt |
| 426 | Higher Ed Repay State Loan |
| 428 | Dependent Care |
| 433 | Total Unemployment Ins Owed |
| 442 | Pre-Tax Adoption |
| 00 | Medicare Deficiency |
| 501 | Social Security Deficiency |
| 502 | NYS SS/Medicare Deficiency |
| GARNSH | Garnishments |
| HIATRG | Regular After Tax Health |
| HIATSP | Special After Tax Health Adj |
Tax Information
These monies are taxable income and are subject to all employment taxes 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 (AJR, ARC, ARO, and Retro (RXX)) are supplemental taxable wages, will be included in the employee’s taxable gross and are 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. Yonkers Flat Rate Withholding is 1.95975% 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 2022 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.
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.
Payroll Register and Employee’s Paycheck/Advice
The Earnings Codes LOC and/or SUP and the amount paid will be displayed on the Payroll Register. The Earnings Description Location Pay or Supplemental Location Pay and the amount paid will appear on the employee’s paycheck stub and direct deposit advice (if applicable).
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.
Questions
Questions regarding this bulletin may be directed to the Payroll Earnings mailbox.
Questions regarding general deductions may be directed to the Payroll Deduction mailbox.