Purpose
To explain processing of the 2009 Prepaid Legal Service Benefit for tax purposes.
Background
In accordance with the Internal Revenue Code, Section 61, it is required that the value of employer-funded group legal service benefits be considered as reportable income for each covered employee. Therefore, the value of this benefit will be added to the employee’s earnings and reflected on the 2009 W-2 Statement.
Affected Employees
Employees represented by District Council 37 in the bargaining units listed below who reside within the following zip codes:
| New York City | Zip Codes |
|---|---|
| Brooklyn | 112XX |
| Bronx | 104XX |
| Queens | 110XX, 111XX, 113XX, 114XX |
| Manhattan | 100XX, 101XX, 102XX |
| Staten Island | 103XX |
| New York State | Zip Codes |
|---|---|
| Nassau County | 110XX, 115XX, 116XX, 117XX, 118XX |
| Suffolk County | 117XX (except 11719, 11764, 11778, 11786, 11789 & 11792) |
| Westchester County | 105XX, 106XX, 107XX, 108XX |
| Rockland County | 10901, 10911, 10913, 10920, 10923, 10927, 10931, 10952, 10954, 10956, 10960, 10962, 10964, 10965, 10968, 10970, 10974, 10976, 10977, 10980, 10982, 10983, 10984, 10986, 10989, 10993, 10994 |
Also affected are all employees who are represented by Teamsters, Local 237 or SEIU, Local 300 in the bargaining units listed below.
Note: Zip code criteria only apply to members of District Council 37.
Effective Date(s)
Paychecks dated December 17, 2009 (Institution)
OSC Actions
OSC will automatically apply the Prepaid Legal Service Benefit for the 2009 calendar year for employees in a status of Active or Paid Leave who received a paycheck in 2009.Listed below are the unions, bargaining units, values of the Prepaid Legal Service Benefit and the Earnings Codes:
| Union | Bargaining Units | Value | Earnings Code |
|---|---|---|---|
| District Council 37 | CC, SF, SJ, T9, TG, TH, TJ, TK, TL, TM, TO,TP, TR, TU, TX, TW, U3, U6 | $107.00 | PL3 |
| Teamsters, Local 237 |
SB, SC, SE, SL*, SM, SP,ST, SU, SV, SW, SX, SZ, TS, TT | $80.95 | PL1 |
| SEIU, Local 300 | S6 | $78.00 | PL2 |
*Excluding SL Hourly job code 016366
DC 37 has determined that nonresident aliens are eligible to receive this benefit. Earn Codes to process the benefit for nonresident aliens who meet the criteria above are as follows:
| Earn Code | NRA Income Code |
|---|---|
| XPL | IC 17 |
| YPL | IC 18 |
| ZPL | IC 19 |
Agencies should notify affected employees.
Control-D Report
Control-D report NPAY771 (Time Entry Payment Report) will list all employees for whom the Prepaid Legal Service Benefit was processed.
Payroll Register and Employee’s Paycheck/Advice
The applicable earnings code and the value will be displayed on the payroll register and the employee’s paycheck stub or direct deposit advice.
Questions
Questions regarding this Bulletin may be directed to the Tax and Compliance mailbox.