Purpose:
The purpose of this bulletin is to inform the Division of State Police of OSC’s automatic processing of the 2024 State Police retroactive increase to Hazardous Duty Pay.
Affected Employees:
All employees of the Division of State Police in the State Police Troopers Unit (Troopers Unit) – BU07 and the State Police Commissioned/Non-commissioned Officers Unit (CO/NCO) – BU17 who meet the eligibility criteria are affected.
Background:
Chapter 130 of the Laws of 2025, which implemented the 2023-2026 Agreements between the State of New York and the Police Benevolent Association of the New York State Troopers (PBA), provides for an increase to Hazardous Duty Pay retroactive to April 2024.
Effective Dates:
The April 2024 retroactive increase to Hazardous Duty Pay is effective on 11/01/2024, end dated on 10/31/2025 and will be systematically processed by OSC in the Administration Pay Period 6L check dated 07/02/2025.
Eligibility Criteria:
Employees in Bargaining Unit 07 or Bargaining Unit 17 who have a Payroll Status of Active, Leave With Pay, or Leave of Absence who received the 2024 State Police Hazardous Duty Payment on or after 11/01/2024 are eligible for the following increase:
| Earnings Code (Payment) | Current Amount | April 1, 2024 Amount |
|---|---|---|
| HZS | $4,734 | $5,109 |
OSC Actions:
OSC will automatically insert a row on the Additional Pay page using the applicable Effective Date from the Effective Date section to reflect the 2024 State Police retroactive increase to Hazardous Duty Pay for employees who meet the eligibility criteria as follows:
| Earnings Code: | HZS |
|---|---|
| Effective Date: | 11/01/2024 |
| OT Eff Date: | 11/01/2024 |
| Annual Addl Earnings: | $5,109 |
| Goal Balance | $4,734 |
| End Date: | 10/31/2025 |
Automatic Retroactive Processing
OSC will automatically calculate retroactive adjustments for Time Entry earnings that are calculated by the system and include Hazardous Duty Pay (HZS) such as OT – Nu 07 (Earnings Code OTI).
If an employee is eligible for a retroactive increase and has been paid by multiple agencies in the same Employee Record Number since the effective date of the increase, all retroactive adjustments will be paid in the most current agency within that record number. If an employee has been paid in multiple Employee Record Numbers, each record number will be evaluated separately, and retroactive payments will be processed in the record number in which the increase occurred.
Agency Actions - Retroactive Processing
Reporting Retroactive Adjustments
Time Entry earnings codes that are submitted with an amount will not be adjusted automatically. Therefore, beginning in Administration Pay Period 7L, agencies must report the adjustment amount for earnings codes such as OT Override (Earnings Code OTO).
Correcting an Automatic Retroactive Adjustment
When certain conditions exist in an employee’s record, the automatic retroactive adjustment may be incorrect. Therefore, the agency is responsible for identifying employees who meet the following conditions and, if necessary, submitting the necessary adjustment:
- If an employee has a check returned or exchanged on an AC-230 for dates on or after the effective date of the payment, the payroll system does not consider the AC-230 when calculating the automatic retroactive adjustment.
- Adjustments for earnings that are calculated automatically, such as OT – Nu 07(Earnings Code OTI), will be calculated incorrectly if the dates previously reported as a single entry on the Time Entry page overlap the effective date of the payment. The system will calculate an adjustment for all earnings reported in a single entry based on the salary in effect on the Earnings End Date.
- For employees who had a change reported on the Job Data page since the effective date of the payment and the action resulted in an overpayment of earnings, the automatic negative retroactive adjustment may not have been processed because the overpayment was either not recoverable or was recovered using an overpayment earnings code or an AC-230. In this case, the negative retroactive adjustment may be re-generated when the payment is processed. OSC will turn off (not process) the automatic negative adjustment for these employees since in most cases these overpayments were either not recoverable or recovered using another method.
If an overpayment of earnings is identified after the automatic payment is processed but before the paycheck is received by the employee, the employee must be notified of the overpayment and the adjustment that will be reported in a subsequent pay period.
Submitting an Adjustment
When an adjustment is needed for overtime or recall such as OT Override (Earnings Code OTT), Earnings Code ARO (Adj Retro Raise for OT and RCL) must be used to process the adjustment. Please refer to Payroll Bulletin 1893 – Reporting Adjustments to Overtime for more information. Agencies must continue to use Earnings Code AJR (Adjust Raise) for all other override Time Entry Earnings Codes requiring a manual adjustment that are a result of a retro salary increase.
To process a retroactive adjustment or correct an automatic retroactive adjustment, agencies must submit the following information on the Time Entry page or the Time Entry Interface (NPAY502) using the Earnings Code AJR or ARO:
| Earnings Begin Date: | The first date included in the adjustment |
|---|---|
| Earnings End Date: | The last date included in the adjustment |
| Earn Code: | AJR or ARO |
| Amount: | Amount to be adjusted |
| Comments: | An explanation of the adjustment |
Control-D Report Available After Processing:
The following Control-D report will be available after processing of the automatic increases:
NHRP703 - Mass Salary Additional Pay Report
This report identifies all employees who received an automatic April 2024 retroactive increase to Hazardous Duty Pay (Earnings Code HZS). Fields on this report include EmplID, Employee Record Number, Employee Name, Earn Code, Grade, Salary Plan, Bargaining Unit, and Additional Pay Amount.
General Deductions:
All general deductions for employees whose Payroll Status is Terminated, Retired, or Deceased will be automatically canceled by OSC with the exception of percentage-based dues and the following:
| Code | Description |
|---|---|
| 406 | Strike/Discip Fine |
| 410 | Health Care Spending Account |
| 416 | Deferred Comp |
| 420 | NY Dependent Care Contribution |
| 425 | Repay State Loans/Debt |
| 426 | Higher Ed Repay State Loan |
| 428 | Dependent Care |
| 433 | Total Unemployment Ins Owed |
| 442 | Pre-Tax Adoption |
| 500 | Medicare Deficiency |
| 501 | Social Security Deficiency |
| 502 | NYS SS/Medicare Deficiency |
| GARNSH | Garnishments |
| HIATRG | Regular After Tax Health |
| HIATSP | Special After Tax Health Adj |
Tax Information:
These monies are supplemental taxable income, will be included in the employee’s taxable gross and are subject to all employment and income taxes.
The adjustments (Earnings Codes AJR and ARO) and retroactive payments (Earnings Codes RXX) 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. Yonkers Flat Rate Withholding is 1.95975% for Yonkers residents and 0.50% for Yonkers non-residents.
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.
Special Wage Payments for Individuals Who Filed for Retirement Social Security Benefits:
Per Internal Revenue Service Publication 957, OSC will be reporting retro 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 2025 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 for further details on the New York Retiree Indicator box.
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.