Unified Court System Bulletin No. UCS-301

Prepaid Legal Service Benefit for Unified Court System (UCS) Employees
Date Issued
October 8, 2021


The purpose of this bulletin is to inform agencies of the processing of the 2021 Prepaid Legal Service Benefit.

Affected Employees

The following employees are affected:

  • Employees represented by Communication Workers of America (CWA), Local 1180 in bargaining unit SD.
  • Employees represented by District Council 37 in bargaining unit SK who reside within the zip codes as identified below:

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


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 2021 Form W-2 (Wage and Tax Statement).

Effective Dates

Effective as of paychecks dated 11/10/2021 (Administration).

OSC Actions

OSC will automatically apply the Prepaid Legal Service Benefit for the 2021 calendar year for employees with 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 2021.

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

Union Bargaining Units Value Earnings Code
District Council 37 SK $107.00 PL3
CWA, Local 1180 SD $100.13 PL5

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 as follows:

Earnings Code NRA Income Code

OSC will set up Social Security and Medicare tax deficiency deductions for any employee who is inactive at the time the benefit is applied. As a result, the deficiency will automatically be recovered through payroll deduction should the employee later return to the payroll.

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 2.30815% 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 the employee’s paycheck and/or direct deposit advice.


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