Purpose:
The purpose of this bulletin is to notify agencies of three new earnings codes that have been created to allow the Office of Employee Relations (OER) to process Tuition Reimbursement and Certification and Licensure Exam Fee Reimbursement (CLEFR) through PayServ.
Affected Employees:
Employees participating in OER’s Tuition Assistance and CLEFR programs.
Background:
Employees receiving taxable Tuition and CLEFR reimbursement outside of the payroll system are subject to taxes at year end. This can be a significant burden on some employees, in some cases creating tax deficiencies. OER requested the ability to submit these payments through payroll. This will allow OSC to track the non-taxable payments and to tax employees on the taxable payments when they are paid instead of taxing future wages. This will allow OER to pay these benefits via direct deposit and reduce the negative year-end tax impact to employees.
https://oer.ny.gov/tuition-reimbursement-programs
Effective Dates:
The new earnings codes will be implemented in July of 2025 and affected employees may see payments in any check after July 24, 2025.
Eligibility Criteria:
Employees in Bargaining Units: 01, 05, 06, 13, 18, 21, 31, 34, 40, 46, 52, 66, 76, and 77 that participate in the Tuition Reimbursement or CLEFR Programs.
OSC Actions:
OSC has created the following Time Entry Earnings Codes to process OER Tuition Reimbursement and CLEFR payments submitted by OER.
| Earnings Code | Earnings Description | Function |
|---|---|---|
| TRN | Tuition Reimburse Non-Taxable | This non-taxable tuition reimbursement will be paid first up to the IRS limit amount (e.g. $5,250 for 2025). |
| TRT | Tuition Reimburse Taxable | This taxable tuition reimbursement will be paid and taxed once the employee has received the full non-taxable amount. |
| CLE | Cert Lic Exam Fee Reimburse | This taxable CLEFR reimbursement will be paid and taxed. |
Agency Actions:
These new earn codes are specific to OER and should not be utilized by agencies. Agencies may be requested to enter Educational Assistance (EDA) for impacted employees as we reconcile what payments (if any) prior to July should have been taxed. If you are not directly requested to enter EDA there is no action needed until year-end.
General Deductions:
These new earn codes are not included as pensionable wages for retirement and are not subject to union dues or garnishments.
Tax Information:
The TRT and CLE earn codes increase the employees’ taxable gross and are subject to all Federal, State, and Local taxes. The TRN earn code is tax exempt.
Questions:
Questions regarding eligibility for this payment may be directed to the Office of Employee Relations.
Questions regarding this bulletin may be directed to the Tax and Compliance mailbox.