This bulletin is superseded by Payroll Bulletin 2052.1.
Purpose:
The purpose of this bulletin is to provide information and processing instructions regarding the new health care and mental hygiene worker bonuses (Health Care Bonus) for eligible State employees of the Executive Branch, the State University of New York, and the City University of New York.
Affected Employees:
Affected employees must be in an eligible position that includes a qualified title and qualified work location and must perform qualified service (as provided in Division of the Budget (DOB) Bulletin No. D-1200).
Background:
In an effort to recruit and retain health care and mental hygiene workers and to recognize their contributions during the COVID-19 pandemic, the FY 2023 New York State Executive Budget contains funding for payment of bonuses for certain frontline healthcare workers. Information regarding the new health care and mental hygiene worker bonuses is contained in Part ZZ of Chapter 56 of the Laws of 2022. Section 1 amends the Social Services Law by adding Section 367-w and Section 4 provides information specific to State employees. For additional information pertaining to the health care and mental hygiene worker bonuses, including funding, employer certifications, qualified titles, qualified locations, and qualified service, please refer to DOB Bulletin No. D-1200.
Effective Dates:
The Health Care Bonus for State employees is effective on the applicable vesting period begin date. Vesting periods are six-month periods determined by the Commissioner of Health between 10/01/2021 and 03/31/2024. An employee’s first vesting period cannot begin after 03/31/2023. If an employee is hired, rehired, or transferred from an ineligible position to an eligible position in the middle of a vesting period, the employee’s first vesting period would start on the next vesting period begin date.
| Vesting Period | Vesting Period Begin Date | Vesting Period End Date | Number of Workdays in the Vesting Period |
|---|---|---|---|
| 1 | 10/01/2021 | 03/31/2022 | 130 |
| 2 | 04/01/2022 | 09/30/2022 | 131 |
| 3 | 10/01/2022 | 03/31/2023 | 130 |
| 4 | 04/01/2023 | 09/30/2023 | 130 |
| 5 | 10/01/2023 | 03/31/2024 | 130 |
Eligibility Criteria:
An employee must meet all of the following criteria to be eligible for the Health Care Bonus payment. Agencies should evaluate whether the employee meets each criterion in the order provided.
Qualified Title, Location and Service
The employee must work in a qualified title, in a qualified location and perform qualified service during the vesting period as provided in DOB Bulletin No. 1200.
Eligible Compensation Rate Codes
The employee may be in any Compensation Rate Code including ANN, CAL, 21P, CYP, CYF, ADJ, BIW, FEE, or HRY.
Continuous Employment
The employee must be continuously employed during the vesting period in an eligible position or continuously employed in a composite position (identified by Increment Code 2222) in which one or more of the positions is eligible. Time on a paid leave of absence is included in the determination of continuous employment under this program.
Salary Cap or Earnings Cap
If the employee’s eligible position has a Compensation Rate Code of ANN, CAL, 21P, CYP or CYF, the employee’s full-time annualized salary, excluding all other earnings (such as location pay, inconvenience pay, geographic pay, overtime, and holiday pay), during the vesting period must not exceed $125,000. The employee’s full-time annualized salary must be determined individually for each eligible position.
If the employee’s eligible position has a Compensation Rate Code of AJT, BIW, FEE, or HRY, the employee’s total cumulative earnings paid at the straight rate (Earnings Codes such as AJT, FEE, FRC, FNR, RGH, RGS, EXT) in all eligible positions during the vesting period must be less than $62,500. Payments using an overtime rate, such as overtime and extra service, must not be included.
Note: Refer to Agency Actions – Determining Whether the Employee Exceeds the Salary Cap or Earnings Cap for additional information and examples.
Average Hours Worked
The employee must work a combined average of at least 20 hours per week during a single vesting period in all eligible positions. The average hours are determined by totaling all hours worked in all eligible positions that do not exceed the salary or earnings cap and dividing the sum by the twenty-six weeks in a vesting period.
Ex. An employee works 250 hours in Eligible Position A and 330 hours in Eligible Position B during a single vesting period. Therefore, the combined hours during the vesting period are 580 hours.
580 hours / 26 weeks = 22.3 = 22 average hours per week
Note: Refer to Agency Actions - Determining Bonus Amount Payable Using Earnings Code HCB for guidance on what type of earnings codes should be included when totaling hours worked.
Impact of General Salary Increases on Health Care Bonus Eligibility:
General salary increases that are effective prior to or during the vesting period and implemented during the vesting period must be included when calculating the full-time annualized salary and the total cumulative earnings paid at the straight rate.
Note: When calculating the total cumulative earnings paid at the straight rate for employees in a non-annualized position, only the retroactive earnings applicable to the vesting period should be included.
General salary increases that are effective prior to or during the vesting period but implemented after completion of the vesting period must not be included when calculating the full-time annualized salary or the total cumulative earnings paid at the straight rate.
OSC Actions:
Health Care Bonus payments for State employees will be processed after completion of each vesting period. Since the NYS Payroll System (PayServ) will not process a transaction on the Additional Pay page with a retroactive End Date, transactions for the Health Care Bonus for eligible State employees must be submitted using Time Entry. Time Entry, however, will not automatically include these monies in the calculation of overtime. Therefore, additional Time Entry transactions will be needed to incorporate the bonus payment into the employee’s overtime rate.
OSC has created the following Time Entry Earnings Code to process the Health Care Bonus for all eligible State employees.
| Earnings Code | Earnings Description |
|---|---|
| HCB | Health Care Bonus |
OSC has also created the following Time Entry Earnings Codes to incorporate the bonus payment into the overtime rate for all eligible State employees.
| Earnings Code | Earnings Description | Overtime Rate Per Hour |
|---|---|---|
| HO1 | HealthCareBonus$500 OT .00075 | $0.38 |
| HO2 | HealthCareBonus$1000 OT .00075 | $0.75 |
| HO3 | HealthCareBonus$1500 OT .00075 | $1.13 |
| H1O | HealthCareBonus$500 OT .00072 | $0.36 |
| H2O | HealthCareBonus$1000 OT .00072 | $0.72 |
| H3O | HealthCareBonus$1500 OT .00072 | $1.08 |
| HO4 | HealthCareBonus$500 OT .00125 | $0.63 |
| HO5 | HealthCareBonus$1000 OT .00125 | $1.25 |
| HO6 | HealthCareBonus$1500 OT .00125 | $1.88 |
| H4O | HealthCareBonus$500 OT .00120 | $0.60 |
| H5O | HealthCareBonus$1000 OT .00120 | $1.20 |
| H6O | HealthCareBonus$1500 OT .00120 | $1.80 |
| HO7 | HealthCareBonus$500 OT St Rt | $0.24 |
| HO8 | HealthCareBonus$1000 OT St Rt | $0.48 |
| HO9 | HealthCareBonus$1500 OT St Rt | $0.72 |
Agency Actions:
If an employee works in more than one eligible position, all agencies in which the employee performed qualifying service must work together to determine an employee’s eligibility and payment amount. Agencies should be aware that employees may have qualifying service in multiple state agencies and must be prepared to contact other agencies as needed to consolidate data and make a determination on qualifying service as described in Eligibility Criteria. The agency in which the employee works the greatest number of hours in an eligible position is responsible for submitting the Health Care Bonus payments. Each agency, however, is responsible for submitting the appropriate overtime adjustment earnings code based on the full value of the Health Care Bonus payments for only the overtime hours earned in their agency (see Overtime Calculation Information).
Determining Whether the Employee Exceeds the Salary Cap or Earnings Cap
Salary Cap of $125,000 for Annualized Employees (Compensation Rate Code of ANN, CAL, 21P, CYP, CYF)
The employee’s full-time annualized salary, excluding all other earnings (such as location pay, inconvenience pay, geographic pay, overtime, and holiday pay) during the vesting period must not exceed $125,000 and must be determined individually for each eligible position as follows:
- If the employee’s work percentage is 100%, use the full-time annualized salary.
- If the employee’s work percentage is less than 100%, use the full-time annualized salary regardless of the monies the employee receives.
- Ex. While an employee with an annual salary of $140,000 and a work percentage of 60% will only earn $84,000 per year, the employee’s full-time annualized salary of $140,000 exceeds $125,000; therefore, the employee is ineligible for the payment in this position.
- Regardless of the employee’s work percentage, if the employee has a change in salary (increase or decrease) in an eligible position during the vesting period, the full-time annualized salary of each time period must be evaluated individually to determine eligibility for each time frame.
- Ex. During Vesting Period #1 (10/01/2021 – 03/31/2022), the employee’s full-time annualized salary was $110,000 for the period 10/01/2021 to 11/15/2021 in an eligible position and was $130,000 for the period 11/16/2021 to 03/31/2022 in the same or different eligible position. Therefore, only hours worked during the period 10/01/2021 to 11/15/2021 may be considered in determining eligibility.
- If the employee works part-time in two or more eligible positions during the vesting period, the full-time annualized salary of each position must be evaluated individually to determine eligibility in each position.
- Ex. #1: During Vesting Period #1 (10/01/2021 – 03/31/2022), the employee worked 60% in Eligible Position A with a full-time annualized salary of $110,000 and worked 40% in Eligible Position B with a full-time annualized salary of $130,000. Therefore, only the hours worked in Eligible Position A may be considered in determining eligibility.
- Ex. #2: During Vesting Period #1 (10/01/2021 – 03/31/2022), the employee worked 50% in Eligible Position A with a full-time annualized salary of $120,000 and worked 50% in Eligible Position B with a full-time annualized salary of $120,000. Therefore, the combined hours worked in both Eligible Position A and Eligible Position B may be considered in determining eligibility.
Earnings Cap of $62,500 for Non-Annualized Employees (Compensation Rate Code of ADJ, BIW, FEE, HRY)
The employee’s total cumulative earnings paid at the straight rate (Earnings Codes such as AJT, FEE, FRC, FNR, RGH, RGS, EXT) in all eligible positions during the vesting period must not exceed $62,500. Payments using an overtime rate, such as overtime and extra service, must not be included.
- Ex. #1: During Vesting Period #1 (10/01/2021 – 03/31/2022), the employee earned a total of $40,000 in straight rate earnings in Eligible Position A and $30,000 in Eligible Position B. Since the combined total earnings exceeds $62,500, the employee is not eligible for the payment.
- Ex. #2: During Vesting Period #1 (10/01/2021 – 03/31/2022), the employee earned a total of $30,000 in straight rate earnings in Eligible Position A and $30,000 in Eligible Position B. Since the combined total earnings does not exceed $62,500, the combined hours worked in both Eligible Position A and Eligible Position B may be considered in determining eligibility.
Salary/Earnings Cap for Employees with a Change Between Annualized and Non-Annualized Positions
If the employee has a change between a position with an annualized Compensation Rate Code (ANN, CAL, 21P, CYP, CYF) and a position with a non-annualized Compensation Rate Code (ADJ, BIW, FEE, HRY) during a single vesting period,
- the full-time annualized salary cap of $125,000 for the annualized position must be used, and
- the earnings cap of $62,500 for the non-annualized position must be prorated based on the length of time in the non-annualized position.
- Ex. From 10/01/2021-11/15/2021, the employee is in an annual position with a full-time annualized salary of $120,000. Effective 11/16/2021 the employee transfers to an hourly position and remains in that position through the end of the vesting period which is 03/31/2022. In the hourly position, the employee earned a total of $50,000 in eligible earnings.
- Step 1: Compare the employee’s full-time annualized salary to the annualized salary cap of $125,000.
- Step 2: Determine the number of days worked in the non-annualized position.
11/16/2021 – 03/31/2022 = 98 days
- Step 3: Divide the number of days worked in the non-annualized position from Step 2 by the total number of days in the vesting period (see Effective Dates) to determine the percentage worked in the non-annualized position.
11/16/2021 – 03/31/2022: 98 days / 130 days = .753 = .75
- Step 4: Multiply the non-annualized salary cap by the percentage of time worked in the non-annualized position from Step 3 to determine the pro-rated salary cap.
$62,500 x .75 = $46,875 - Step 5: Compare the employee’s total earnings in the non-annualized position to the pro-rated non-annualized salary cap from
Step 4. - Determination: Since the employee’s full-time annualized salary does not exceed the salary cap, the hours worked in the annual position may be considered in determining eligibility. The employee’s totals earnings, however, exceed the pro-rated cap. Therefore, the hours worked in the non-annualized position must not be included in determining eligibility.
- Step 1: Compare the employee’s full-time annualized salary to the annualized salary cap of $125,000.
- Ex. From 10/01/2021-11/15/2021, the employee is in an annual position with a full-time annualized salary of $120,000. Effective 11/16/2021 the employee transfers to an hourly position and remains in that position through the end of the vesting period which is 03/31/2022. In the hourly position, the employee earned a total of $50,000 in eligible earnings.
Salary/Earnings Cap for Employees Who Work Simultaneously in Annualized and Non-Annualized Positions
If the employee works simultaneously in multiple eligible positions with a combination of annualized Compensation Rate Codes (ANN, CAL, 21P, CYP, CYF) and non-annualized Compensation Rate Codes (ADJ, BIW, FEE, HRY) during a single vesting period,
- the full-time annualized salary cap of $125,000 for the annualized position must be used, and
- the earnings cap of $62,500 for the non-annualized position must be prorated based on the remaining allowable work percentage in the non-annualized position.
- Ex. From 04/01/2022-09/30/2022, the employee worked 60% in an annual position with a full-time annualized salary of $70,000 and worked in two hourly positions in which they earned a total of $30,000 in eligible earnings.
- Step 1: Compare the employee’s full-time annualized salary to the annualized salary cap of $125,000.
- Step 2: Determine the employee’s remaining allowable work percentage in the hourly position.
100% Work Schedule – 60% Work Schedule in Annual Position = 40% Allowable Remaining Work Schedule in Hourly Position - Step 3: Multiply the non-annualized salary cap by the remaining allowable work schedule percentage in the hourly position from Step 2.
$62,500 x .40 = $25,000 - Step 4: Compare the employee’s total earnings in the non-annualized position to the pro-rated non-annualized salary cap from Step 3.
Determination: Since the employee’s full-time annualized salary does not exceed the salary cap, the hours worked in the annual position may be considered in determining eligibility. The employee’s totals earnings, however, exceed the pro-rated cap. Therefore, the hours worked in the non-annualized position must not be included in determining eligibility.
- Ex. From 04/01/2022-09/30/2022, the employee worked 60% in an annual position with a full-time annualized salary of $70,000 and worked in two hourly positions in which they earned a total of $30,000 in eligible earnings.
Determining Bonus Amount Payable Using Earnings Code HCB
The Health Care Bonus for eligible State employees is a lump sum payment in the amount of $500, $1,000 or $1,500. The payment amount is based on the combined average number of hours worked per week during the vesting period in all eligible positions in which the employees does not exceed the salary or earnings cap. An employee may receive a payment for no more than two vesting periods and cannot receive more than $3,000 in total. The second vesting period does not need to be consecutive with the first vesting period.
- $500 – the employee worked a cumulative average of at least 20 hours but less than 30 hours per week during the vesting period
- $1,000 – the employee worked a cumulative average of at least 30 hours but less than 37.5 hours per week during the vesting period
- $1,500 – the employee worked a cumulative average of at least 37.5 hours per week during the vesting period
The number of hours worked are determined as follows:
- Regular hours, extra time hours, holiday pay hours, extra service hours, overtime hours, non-compensatory overtime hours, overtime hours paid at a straight rate, and out-of-title overtime hours paid in an eligible position only are included in determining the number of hours worked.
Note: Lost time hours associated with an unauthorized absence must reduce the number of hours worked during the vesting period.- If the employee is in a composite position (identified by Increment Code 2222), only those hours worked in the eligible position are included in determining the number of hours worked.
- If the employee’s regular position is not eligible but the employee works out-of-title overtime or extra service in an eligible position, only those hours worked in the out-of-title or extra service position are included in determining the number of hours worked.
- If the employee’s regular position is eligible and the employee works out-of-title overtime or extra service in an ineligible position, only those hours worked in the regular position are included in determining the number of hours worked.
- Time charged to accruals in an eligible position is included in determining the number of hours worked.
- Time on paid military leave, unpaid military leave, paid workers’ compensation leave, unpaid workers’ compensation leave, paid sick leave, unpaid sick leave, paid family medical leave, or unpaid family medical leave is included in determining the number of hours worked.
Note: Time on a disciplinary leave is not considered hours worked.
Submitting the Health Care Bonus Payment
Beginning in Institution Pay Period 13L/14C and Administration Pay Period 14L/15C, agencies may submit transactions to process the Health Care Bonus for all eligible State employees by entering the following information on the Time Entry page or the Time Entry Interface (NPAY502):
| Earnings Begin Date: | Enter the vesting period begin date. |
|---|---|
| Earnings End Date: | Enter the vesting period end date. |
| Earn Code: | HCB |
| Amount: | Enter the appropriate bonus amount as determined above. |
Overtime Calculation Information:
The Health Care Bonus for State employees must be included in the calculation of overtime compensation (refer to the Online Payroll Manual accessed from the PayServ Bulletin Board – Payroll Manuals > Earnings Manual > Time Entry Payments > Overtime Compensation).
Since PayServ does not include Time Entry payments in the calculation of overtime, agencies must enter an additional transaction through Time Entry in order to pay the overtime hourly rate associated with the Health Care Bonus payment for eligible State employees. This information should be entered in the same pay period as the Health Care Bonus payment.
| Earnings Begin Date: | Enter the first day of the vesting period. |
|---|---|
| Earnings End Date: | Enter the last day of the vesting period. |
| Earn Code: | The Earn Code should be selected from the table below based on the overtime rate / denominator used to pay the original overtime earned during the vesting period AND the Health Care Bonus payment amount paid for that corresponding vesting period. |
| Hours/Units: | Enter the sum of the overtime hours earned during the vesting period. These hours must be grouped based on the overtime rate / denominator used to pay the original overtime during the vesting period. * |
*Note: It is possible that an employee earned overtime using earnings codes associated with differing overtime rates / denominators during a vesting period. In this case, multiple transactions must be entered to correctly incorporate the bonus payment into the overtime rate.
| Bonus Amount Paid in the Vesting Period | |||
|---|---|---|---|
| $500 | $1,000 | $1,500 | |
| Original Overtime Rate / Denominator | Health Care Bonus Overtime Adjustment Earnings Code | ||
| 1.5 / 2000 (Earnings Codes such as C75, OTA, OTW, RCL) | HO1 | HO2 | HO3 |
| 1.5 / 2080 (Earnings Codes such as C72, CTH, EOS, OCS, ORC, OTH, OTS, OWC) | H1O | H2O | H3O |
| 2.5 / 2000 (Earnings Codes such as CU2, O2R, OU2) | HO4 | HO5 | HO6 |
| 2.5 / 2080 (Earnings Codes such as C25, CD2, O25, OD2, OR5) | H4O | H5O | H6O |
| Straight Rate (Earnings Codes such as OTB) | HO7 | HO8 | HO9 |
Note: Agencies must determine the overtime rate / denominator used to pay overtime hours earned during a vesting period and paid using an override or out-of-title earnings code (such as Earnings Code CVO, OTO, or OTT). Once determined, these overtime hours must be combined with the other overtime hours earned during the vesting period that were systematically calculated using the same overtime rate / denominator.
Correcting Previously Paid Health Care Bonus and/or Overtime Adjustment Payments:
If an agency determines that an employee was paid an incorrect Health Care Bonus amount or was paid the incorrect number of overtime adjustment hours, the following actions must be taken.
- If the employee received a Health Care Bonus payment but was not eligible, the agency must submit a Time Entry transaction using Earnings Code HCB, the same Earnings Begin and Earnings End dates of the erroneous payment, and the negative value of the amount originally paid.
- If the employee also received an overtime adjustment payment(s) related to the erroneous Health Care Bonus payment, the agency must also submit a Time Entry transaction using the original overtime adjustment earnings code(s), the same Earnings Begin and Earnings End dates of the erroneous payment, and the negative value of the number of hours originally paid.
- If the employee received a Health Care Bonus payment in excess of the amount to which they were eligible, the agency must submit a Time Entry transaction using Earnings Code HCB, the same Earnings Begin and Earnings End dates of the original payment, and the negative value of the amount not owed to the employee.
- If the employee also received an overtime adjustment payment(s) related to the excessive Health Care Bonus payment, the following actions must be taken since the overtime adjustment code is specific to the Health Care Bonus payment amount:
- The agency must submit a Time Entry transaction using the original overtime adjustment earnings code(s), the same Earnings Begin and Earnings End dates of the excessive payment, and the negative value of the number of hours originally paid.
- The agency must submit a Time Entry transaction using the correct overtime adjustment earnings code(s), the same Earnings Begin and Earnings End dates of the excessive payment, and the positive value of the number of hours originally paid.
- If the employee also received an overtime adjustment payment(s) related to the excessive Health Care Bonus payment, the following actions must be taken since the overtime adjustment code is specific to the Health Care Bonus payment amount:
- If the employee received a Health Care Bonus payment in which the amount was less than they were eligible to receive, the agency must submit a Time Entry transaction using Earnings Code HCB, the same Earnings Begin and Earnings End dates of the original payment, and the positive value of the additional amount owed to the employee.
- If the employee also received an overtime adjustment payment(s) related to the incorrect Health Care Bonus, the following actions must be taken since the overtime adjustment code is specific to the Health Care Bonus payment amount:
- The agency must submit a Time Entry transaction using the original overtime adjustment earnings code(s), the same Earnings Begin and Earnings End dates of the incorrect payment, and the negative value of the number of hours originally paid.
- The agency must submit a Time Entry transaction using the correct overtime adjustment earnings code(s), the same Earnings Begin and Earnings End dates of the incorrect payment, and the positive value of the number of hours originally paid.
- If the employee also received an overtime adjustment payment(s) related to the incorrect Health Care Bonus, the following actions must be taken since the overtime adjustment code is specific to the Health Care Bonus payment amount:
- If the employee received the correct Health Care Bonus payment amount, but was paid the incorrect number of hours for the overtime adjustment, the following actions must be taken:
- If the employee received too many hours, the agency must submit a Time Entry transaction using the original overtime adjustment earnings code, the same Earnings Begin and Earnings End dates of the original payment, and the negative value of the number of hours the employee was overpaid.
- If the employee is owed additional hours, the agency must submit a Time Entry transaction using the original overtime adjustment earnings code, the same Earnings Begin and Earnings End dates of the original payment, and the positive value of the additional number of hours owed to the employee.
- If an agency enters a correction as explained above, they must also enter a detailed Time Entry comment explaining the correction.
Tax Information:
The Health Care Bonus payment (Earnings Code HCB) is considered supplemental wages and will be included in the employee’s taxable gross subject to all Federal and non-New York State income taxes. These earnings, however, are exempt from both New York State and local income taxes regardless of whether the employee lives out-of-state.
The additional overtime payments are taxable income, will be included in the employee’s taxable gross and are subject to all employment and income taxes.
All income taxes will be calculated using the employee’s current withholding elements in PayServ. Federal, State (if applicable), and New York City (if applicable) income tax withholding will be calculated using the Aggregate method. Yonkers income tax withholding (if applicable) will be calculated using the Flat Rate method (1.95975% for Yonkers residents and 0.50% for Yonkers non-residents).
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.
Payroll Register and Employee’s Paycheck/Advice:
The Earnings Codes provided in OSC Actions, and the associated amount paid will be displayed on the Payroll Register. The Earnings Description and the amount paid will appear on the employee’s paycheck stub and direct deposit advice (as applicable).
Questions:
Questions regarding this bulletin may be directed to the Payroll Earnings mailbox. Please include Health Care Bonus in the Subject of the email.
Questions regarding general deductions may be directed to the Payroll Deduction mailbox.