Purpose:

The purpose of this bulletin is to inform agencies of OSC’s automatic processing of the July 2023 Increase to On-Call Pay and provide instructions for payments not processed automatically.

Affected Employees:

Employees in PSNU – BU08 positions who meet the eligibility criteria are affected.

Background:

Chapter 189 of the Laws of 2023, which implemented the 2022-2026 Agreement between the State of New York and UUP, provides for a July 2023 increase to On-Call Pay.

Effective Dates:

The increase to On-Call Pay will be paid with an effective date of 07/06/2023 in the Administration check date of 11/22/2023.

Eligibility Criteria:

Employees in a BU08 position who received Standby-Unclass NYC (Earnings Code SBN) or Standby-Unclassified (Earnings Code SBU) with earnings dates on or after 07/06/2023 are entitled to the increase.

Earnings Codes and Payment Amounts

OSC Actions:

OSC has updated the hourly rate for Time Entry Earnings Code SBN (Standby-Unclass NYC) from $8.00 to $10.00 and the hourly rate for Time Entry Earnings Code SBU (Standby-Unclassified) from $6.00 to $8.00.

OSC will automatically calculate the retroactive adjustments owed to employees who received any on-call payments at the current amount using Earnings Code SBN or SBU with an Earnings Begin Date on or after 07/06/2023. Retroactive adjustments for these earnings codes will be processed using Earnings Code AJR (Adjust Raise).

Since the on-call payment amounts have increased, the associated standby overtime/recall adjustment payments paid using the following earnings codes 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 07/06/2023:

• Earnings Code RON – Recall Standby OT Unclass NYC
• Earnings Code SON – Standby OT Unclass NYC
• Earnings Code ROU – Recall Standby OT Unclassified
• Earnings Code SOU – Standby OT Unclassified
• Earnings Code SOO – Standby OT Override

If a transaction was previously submitted with an Earnings Begin Date prior to 07/06/2023 and an Earnings End Date on or after 07/06/2023 for any of the earnings codes identified above (Earnings Codes SBN, SBU, RON, SON, ROU, SOU, SOO), the agency is responsible for determining the actual number of hours worked from 07/06/2023 to the Earnings End Date of the transaction and calculating and entering the necessary retroactive adjustment (see Agency Actions – Beginning in Pay Period 17L section).

Agency Actions – Beginning in Pay Period 17L:

Calculating Retroactive Adjustments for On-Call Payments

If a transaction was previously submitted using Earnings Code SBN or SBU with an Earnings Begin Date prior to 07/06/2023 and an Earnings End Date on or after 07/06/2023, the agency is responsible for determining the actual number of hours worked from 07/06/2023 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 SBN and Earnings Code SBU that were earned on or after 07/06/2023 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 $2.00 (This is the difference between the Current Amount and the July 2023 Amount for both Earnings Code SBN and Earnings Code SBU). The resulting calculation is the amount of the adjustment owed to the employee.

Submitting the Retroactive Adjustments for On-Call Payments

To process a retroactive adjustment for on-call 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 Standby Overtime/Recall Payments

If a transaction was previously submitted using Earnings Code RON, SON, ROU, SOU, or SOO with an Earnings Begin Date prior to 07/06/2023 and an Earnings End Date on or after 07/06/2023, the agency is responsible for determining the actual number of hours worked from 07/06/2023 to the Earnings End Date of the transaction and must calculate the appropriate retroactive adjustment as follows:

• Step 1: Multiply the adjustment amount determined in Step 2 of the Calculating Retroactive Adjustments for On-Call Payments section by .01961.
• Step 2: Determine only the number of hours paid using Earnings Codes RON, SON, ROU, SOU, and SOO that were earned on or after 07/06/2023 through the Earnings End Date of the transaction that was not automatically adjusted by OSC.
• Step 3: Multiply the total hours determined in Step 2 by the amount determined in Step 1. The resulting calculation is the amount of the adjustment owed to the employee.

Submitting the Retroactive Adjustments for Standby Overtime/Recall Payments

To process a retroactive adjustment for Standby Overtime/Recall 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 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 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.