Purpose:

The purpose of this bulletin is to provide agency instructions for submitting new Time Entry overtime and Pre-shift Briefing earnings codes to be used for overtime and Pre-Shift Briefing payments, outline the new Pre-Shift Briefing calculation of Earnings Code PS1 and explain the retroactive adjustments systematically calculated by OSC to account for the retroactive change in the overtime factor.

Affected Employees:

Employees who are overtime eligible and in the Security Supervisors Unit (SSPU BU61 and BU91) and who meet the eligibility criteria are affected.

Background:

Chapter 359 of the Laws of 2022 which implements the 2016-2023 Agreement between the State of New York and the NYS Law Enforcement Officers’ Union, District Council 82 (Council 82) for interest arbitration eligible members (BU61) and interest arbitration ineligible members (BU91) of the Security Supervisors Unit (SSPU) provides for the change to the overtime denominator from 2,000 hours to a denominator of 2080 hours, which resulted in a factor change used in the calculation of 1.5 times overtime and pre-shift briefing from .00075 to .00072 and the calculation of 2.5 times overtime from .001205 to .001200. Overtime and pre-shift briefing earned on or after 03/28/2019 (Institution) or 04/04/2019 (Administration) must now be paid using the new overtime factor. To implement this retroactive change, OSC will calculate and process overtime and pre-shift briefing adjustments for affected employees.

Effective Dates:

The retroactive overtime denominator and pre-shift briefing adjustments will be systematically processed using the following effective dates and check dates:

Eligibility Criteria:

Employees in BU61 and BU91 who have overtime earnings on or after 03/28/2019 (Institution) or 04/04/2019 (Administration) will be paid using the new overtime factor per the 2016-2023 agreement.

OSC Actions:

OSC has updated or created Earning Codes to be used to report overtime and overtime related payments for employees in BU61 and BU91 as indicated below:

Overtime Adjustments

OSC will automatically recalculate the following overtime earnings using the new factor of .00072 for overtime paid at the 1.5 rate and .00120 for overtime paid at the 2.5 rate:

• For Earnings Codes OTA, OTW, RCL, SOC, ROC, OU2, O2R, RO2 and SC5 with earnings dates on or after 03/28/2019 through 11/02/2022 (Institution) or on or after 04/04/2019 through 10/26/2022 (Administration), a single adjustment will be entered into Time Entry using the Adjustment Code ARO (Adj Retro Raise for OT and RCL).
• For Earnings Codes C75 and CU2 with earnings dates on or after 03/28/2019-11/02/2022 (Institution) or from 04/04/2019-10/26/2022 (Administration), a single adjustment will be entered into Time Entry using the Adjustment Code ARC (Adj Retro Raise for C19 OT).

Pre-Shift Briefing Adjustments

OSC will automatically process the following:

Earnings Code PS1 (Additional Pay)

• Enter a row on the Job Data page using Action/Reason code PAY/PSP (Pay/Pre-Shift Program) effective 03/28/2019 (Institution) or 04/04/2019 (Administration) to update the overtime factor.
• Process the retroactive Pre-Shift Briefing Adjustments for eligible employees from 03/28/2019 through 11/02/2022 (Institution) or 04/04/2019 through 10/26/2022 (Administration) using the overtime factor of .00072.

Earnings Code PS6 (Time Entry)

• For Earnings Code PS6 with earnings dates on or after 03/28/2019 through 11/02/2022 (Institution) or 04/04/2019 through 10/26/2022 (Administration) that were previously paid, a single adjustment will be entered into Time Entry using the Earnings Code APB (Adj PSB).

Agency Actions:

Beginning in Administration and Institution Pay Period 16L

Overtime

To report Overtime earnings effective beginning 03/28/2022 (Institution) and 04/04/2019 (Administration), the agency must submit the appropriate New Earnings Codes (as listed in the OSC Actions) on the Time Entry page or the Time Entry Interface (NPAY502) using the following procedures:

 Agencies must use the overtime factor of .00072 for overtime paid at the 1.5 rate or .001200 for overtime paid at the 2.5 rate when calculating and submitting any payments using override Earnings Codes such as OTT and OTO.

Pre-Shift Briefing

Agencies should continue to pay Pre-shift Briefing on the Additional Pay page using Earnings Code PS1 to employees who previously received Earnings Code PS1.

Employees previously paid Pre-shift Briefing using Earnings Code PS6 should be paid using Earnings Code PSA effective beginning 03/28/2019 (Institution) and 04/04/2019 (Administration). The agency must submit the Earnings Code on the Time Entry page or the Time Entry Interface (NPAY502) using the following procedures:

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:

Tax Information:

These monies are taxable income, will be included in the employee’s taxable gross and are subject to all employment and income taxes.

The adjustments (Earnings Codes ARC and ARO) are supplemental taxable income, will be included in the employee’s taxable gross income 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 (1.95975% 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.

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 about this bulletin may be directed to the Payroll Earnings mailbox.

Questions regarding deductions may be directed to the Payroll Deduction mailbox.