Unified Court System Bulletin No. UCS-292

Prepaid Legal Service Benefit for Unified Court System (UCS) Employees
Date Issued
October 14, 2020


The purpose of this bulletin is to inform agencies of the processing of the 2020 Prepaid Legal Service Benefit.

Affected Employees

Employees represented by Communication Workers of America (CWA), Local 1180 in bargaining unit SD will be affected.

Employees represented by District Council 37 in bargaining unit SK who reside within the zip codes identified below are affected:

New York City

Zip Codes






110XX, 111XX, 113XX, 114XX, 116XX


100XX, 101XX, 102XX

Staten Island


New York State

Zip Codes

Nassau County

110XX, 115XX, 117XX, 118XX

Suffolk County

005XX, 06390, 117XX (except 11719, 11764, 11778, 11786, 11789, 11792), and 119XX

Westchester County

105XX (except 10509, 10512, 10516, 10524, 10537, 10541, 10542, and 10579), 106XX, 107XX, 108XX

Rockland County

10901, 10911, 10913, 10920, 10923, 10927, 10931, 10952, 10954, 10956, 10960, 10962, 10964, 10965, 10968, 10970, 10974, 10976, 10977, 10980, 10982, 10983, 10984, 10986, 10989, 10993, 10994

Note: The Zip code criteria is only applicable to members of District Council 37.


Pursuant to Internal Revenue Code Section 61, certain fringe benefits including employer-funded group legal service benefits are considered taxable income. Therefore, the value of this benefit will be added to the employee’s taxable gross wages, for tax withholding purposes, and reflected on the 2020 Form W-2 (Wage and Tax Statement).

Effective Dates

Effective as of paychecks dated November 10, 2020 (Administration).

OSC Actions

OSC will automatically apply the Prepaid Legal Service Benefit for the 2020 calendar year for employees who were in a status of Active or Paid Leave and received salary from a position in Bargaining Unit SK or SD at any time during calendar year 2020.

Unions, bargaining units, values of the Prepaid Legal Service Benefit and the Earnings Codes are listed below:


Bargaining Units


Earnings Code

District Council 37




CWA, Local 1180




District Council 37 has determined that nonresident aliens are also eligible to receive this benefit. The Earnings Codes used to process the benefit for nonresident aliens who meet the criteria stated above are listed below:

Earnings Code

NRA Income Code


IC 18


IC 19


IC 20

Effective in 2020, inactive employees who incur a current year Social Security and/or Medicare tax deficiency as a result of the application of the prepaid legal benefit, will not  have their Form W-2 (Wage and Tax Statement) wages (Federal, State, and Local, if applicable) grossed up (increased) for any outstanding balance. Agencies are responsible for notifying their employees of these deficiencies. An alternative method of recovering Social Security and/or Medicare tax deficiencies for inactive employees will be identified.

Agency Actions

Agencies must notify affected employees.

Control-D Report

Control-D report NPAY771 (Time Entry Payment Report) identifies all employees for whom the Prepaid Legal Service Benefit was applied.

Tax Information

The Prepaid Legal Service benefit is supplemental taxable income, will be added to the employee’s taxable gross wages, for tax withholding purposes, and is subject to 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 1.61135% for Yonkers residents and 0.50% for Yonkers non-residents.

Payroll Register and Employee’s Paycheck/Advice

The applicable earnings code and associated value will be displayed on the agency’s payroll register and employee’s paycheck and/or direct deposit advice.


Questions regarding this bulletin may be directed to the Tax and Compliance mailbox.