Purpose:

The purpose of this bulletin is to notify agencies of a change to the AC230 processing schedule and to introduce a new Agency AC230 Worksheet for completion of Form AC230, Worksheet for Paycheck Reversal.

Affected Employees:

All employees with a paycheck being reversed on the AC230 Worksheet due to an overpayment are impacted by this bulletin. 

Background:

Form AC230, Worksheet for Paycheck Reversal, is used to return salary checks for a full or partial refund for employees who are not entitled due to termination, resignation, death, or other causes. Funds associated with paychecks being returned via the AC230 process are sent to OSC by direct deposit reversal, payroll check stop payment, certified check, or money order. These funds are held at OSC until the corresponding AC230 worksheet has been provided to OSC and processed. Agencies are expected to complete and provide the AC230 to OSC at the time the funds are sent to ensure the timely release of any funds the employee may be entitled to. Without submission of Form AC230, OSC has no proof that the employee is not entitled to the funds.

To ensure that OSC does not hold funds a NYS employee may be entitled to, OSC will now require agencies to provide the AC230 worksheet within 30 days of our receipt of the funds. If the AC230 remains outstanding for more than 30 days, OSC will reissue the funds to the employee through the Statewide Financial System (SFS). Agencies can track their outstanding AC230s on a new tab OSC has added to the Payroll Check Notification Report, found on the PayServ Bulletin Board. This new report details all AC230 requests for which OSC is holding funds and the number of days the AC230 remains outstanding to ensure that the corresponding paperwork is submitted timely. 

To assist agencies with completion of the form and limit incorrect forms, OSC has created a new AC230, Worksheet for Paycheck Reversal. The new worksheet is formatted in Excel, and offers agencies two completion options, one of which uses the tax rates from the original paycheck to automatically calculate reversal amounts. 

Effective Dates:

The AC230 process schedule changes detailed in this bulletin will be effective on November 15, 2024.

The new AC230, Worksheet for Paycheck Reversal, is available for agency use immediately.

OSC Actions:

OSC will continue to process Direct Deposit Reversals, Payroll Check Stop Payments, and Check Holds as requests are received. 

OSC will continue to monitor the Payroll Reversal and Exchange mailbox, review all AC230 worksheets for accuracy, and return any inaccurate AC230 worksheets for correction. When OSC has received both the completed AC230 worksheet and corresponding funds, the payment will be reversed in PayServ. Any funds the employee is entitled to will be issued as a paper check through SFS and mailed directly to the employee’s preferred address as listed in PayServ. 

If the required AC230 worksheet is not provided to OSC within 30 days of receiving the funds, OSC will reissue the funds through SFS to the employee’s preferred address listed in PayServ.

OSC will update the Payroll Check Notification Report twice per week, usually Tuesday and Thursday. This report will include all outstanding AC230s for which OSC is holding funds along with the number of days they are currently outstanding. Please refer to Payroll Bulletin 2243.2. 

Agency Actions:

Agencies should continue to complete the following steps for the AC230 Process:

1. Prior to submitting an AC230 to OSC, agencies must review any existing overpayment Earnings Codes that have been created in the employee’s Additional Pay record. Agencies should contact their -Payroll Earnings Auditor to determine if deleting, end dating, or adjusting the overpayment Earnings Code is necessary to prevent duplicate recovery of the overpayment.
2. Detailed General Comments providing an explanation of the overpayment, including the exact dates of the earnings the employee is not entitled to, must be entered in PayServ. 
3. Funds should be obtained for the AC230 process via one of the following methods:
   1. Direct Deposit Reversal - Form AC3197, Direct Deposit Reversal should be sent to the DD Returns and Reversals mailbox and the AC230 worksheet should be sent to the Payroll Reversal and Exchange mailbox at the same time. Please refer to Payroll Bulletin 422.2.
   2. Payroll Check Stop Payment - Should be submitted through your PayServ worklist and the corresponding AC230 worksheet should be sent to the Payroll Reversal and Exchange mailbox at the same time. If the payroll check has not been confirmed, a corresponding Check Hold should be placed with your Payroll Earnings Auditor by emailing the Payroll Earnings mailbox prior to the cutoff for the pay cycle. Please refer to Payroll Bulletin 1964 and Request Stop Payment Job Aid.
   3. Bank check or money order- An agency can obtain a bank check or money order from the employee (personal checks will NOT be accepted). The check should be made payable to the Comptroller’s Revolving Exchange Account and mailed along with the corresponding AC230 worksheet to the following address: 

Office of the State Comptroller

110 State Street

Remittance Control

Albany, NY 12236

Attn: AC230 Unit

If it is later determined that the employee is entitled to the funds a notification must be sent to OSC immediately so a paycheck reissue can be processed as soon as possible. 

AC230 Worksheet:

Two new AC230 worksheets have been created and will replace the existing AC230 form. Agencies may choose to use either of the following options:  

Please refer to the AC230, Worksheet for Paycheck Reversal, for more detailed instructions.

Questions:

Questions regarding this bulletin may be directed to the Payroll Reversal and Exchange mailbox.