Purpose:

The purpose of this bulletin is to inform agencies of OSC’s automatic processing of the 2023 increase to Hazard Duty Pay.

Affected Employees:

Employees in the Professional, Scientific, and Technical Services Unit (BU05) who meet the eligibility criteria are affected.

Background:

Chapter 190 of the Laws of 2023 provides for an increase to Hazard Duty Pay.

Effective Dates:

The Hazard Duty Pay increase is effective on the following dates:

Eligibility Criteria:

Employees in a BU05 position who received Hazard Duty PST Straight Time (Earnings Code HZ1) or Hazard Duty PST Overtime (Earnings Code HZ2) with earnings dates on or after 03/30/2023 (Administration Cycle) or 04/06/2023 (Institution Cycle) are entitled to the increase.

Earnings Codes and Payment Amounts

OSC Actions:

OSC has updated the hourly rate for Time Entry Earnings Code HZ1 (Hazard Duty PST Straight Time) from $0.75 to $0.90 and the hourly rate for Time Entry Earnings Code HZ2 (Hazard Duty PST Overtime) from $1.13 to $1.35 beginning in Check Date 9/27/2023 (Administration Cycle) and 10/05/2023 (Institution Cycle).

OSC will automatically calculate the retroactive adjustments owed to employees who received any Hazard Duty payments at the existing amount prior to Check Date 9/27/2023 (Administration Cycle) and 10/05/2023 (Institution Cycle) paid using Earnings Code HZ1 with an Earnings Begin Date on or after 03/30/2023 (Administration Cycle) or 04/06/2023 (Institution Cycle). Retroactive adjustments for these earnings codes will be processed using Earnings Code AJR (Adjust Raise) and will be paid in Check Date 12/06/2023 (Administration Cycle) and 12/14/2023 (Institution Cycle).

Since the Hazard Duty payment amount has increased, the associated overtime adjustment paid using Earnings Code HZ2 will be automatically adjusted using Earnings Code ARO (Adj Retro Raise for OT and RCL) for those transactions with an Earnings Begin Date on or after 03/30/2023 (Administration Cycle) or 04/06/2023 (Institution Cycle) and paid prior to Check Date 9/27/2023 (Administration Cycle) and 10/05/2023 (Institution Cycle). These adjustments will be paid in Check Date 12/06/2023 (Administration Cycle) and 12/14/2023 (Institution Cycle).

If a transaction was previously submitted with an Earnings Begin Date prior to 03/30/2023 (Administration Cycle) or 04/06/2023 (Institution Cycle) and an Earnings End Date on or after 03/30/2023 (Administration Cycle) or 04/06/2023 (Institution Cycle) for Earnings Codes HZ1 and HZ2, the agency is responsible for determining the actual number of hours worked from 03/30/2023 (Administration Cycle) or 04/06/2023 (Institution Cycle) to the Earnings End Date of the transaction and calculating and entering the necessary retroactive adjustment (see Agency Actions – Beginning in Pay Period 18L section.

Agency Actions – Beginning in Pay Period 18L:

Calculating Retroactive Adjustments for Hazard Duty Payments

If a transaction was previously submitted using Earnings Code HZ1 with an Earnings Begin Date prior to 03/30/2023 (Administration Cycle) or 04/06/2023 (Institution Cycle) and an Earnings End Date on or after 03/30/2023 (Administration Cycle) or 04/06/2023 (Institution Cycle), the agency is responsible for determining the actual number of hours worked from 03/30/2023 (Administration Cycle) or 04/06/2023 (Institution Cycle) to the Earnings End Date of the transaction and must calculate the appropriate retroactive adjustment as follows:

• Step 1: Determine only the number of hours paid using Earnings Code HZ1 that were earned on or after 03/30/2023 (Administration Cycle) or 04/06/2023 (Institution Cycle) through the Earnings End Date of the transaction that was not automatically adjusted by OSC.
• Step 2: Multiply the total hours determined in Step 1 by $0.15 (This is the difference between the New 2023 Amount Per Hour and the Existing Amount for Earnings Code HZ1). The resulting calculation is the amount of the adjustment owed to the employee.

Submitting the Retroactive Adjustments for Hazard Duty Payments

To process a retroactive adjustment for Hazard Duty payments, agencies must submit the following information on the Time Entry page or the Time Entry Interface (NPAY502) using the Earnings Code AJR:

Calculating Retroactive Adjustments for Hazard Duty Overtime Payments If a transaction was previously submitted using Earnings Code HZ2 with an Earnings Begin Date prior to 03/30/2023 (Administration Cycle) or 04/06/2023 (Institution Cycle) and an Earnings End Date on or after 03/30/2023 (Administration Cycle) or 04/06/2023 (Institution Cycle), the agency is responsible for determining the actual number of hours worked from 03/30/2023 (Administration Cycle) or 04/06/2023 (Institution Cycle) to the Earnings End Date of the transaction and must calculate the appropriate retroactive adjustment as follows:

• Step 1: Determine only the number of hours paid using Earnings Code HZ2 that were earned on or after 03/30/2023 (Administration Cycle) or 04/06/2023 (Institution Cycle) through the Earnings End Date of the transaction that was not automatically adjusted by OSC.
• Step 2: Multiply the total hours determined in Step 1 by $0.23 (This is the difference between the New 2023 Amount Per Hour and the Existing Amount for Earnings Code HZ2). The resulting calculation is the amount of the overtime adjustment owed to the employee.

Submitting the Retroactive Adjustments for Hazard Duty Overtime Payments

To process a retroactive adjustment for Hazard Duty Overtime payments, agencies must submit the following information on the Time Entry page or the Time Entry Interface (NPAY502) using the Earnings Code ARO:

Tax Information:

These monies are taxable income subject to all employment taxes and income taxes, will be included in the employee’s taxable gross, and will be reported on the employee’s Form W-2.

The adjustments (Earnings Codes AJR 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 (1.95975% 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 retroactive 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 2023 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 – New York Retiree Indicator for further details on the New York Retiree Indicator box.

Payroll Register and Employee’s 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 pad 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 submitted as a stop payment request with a reason of Exchange in PayServ. The Report of Check Exchange (AC 1476-P), Next of Kin Affidavit (AC 934-P) and original death certificate should be submitted to the Payroll Reversal and Exchange mailbox at the same time as the stop payment request. 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.