STATE OF CONNECTICUT
NANCY WYMAN COMPTROLLER	OFFICE OF THE STATE COMPTROLLER 55 ELM STREET HARTFORD, CONNECTICUT 06106-1775	MARK OJAKIAN DEPUTY COMPTROLLER

MEMORANDUM NO. 2002-47

December 13, 2002

TO THE HEADS OF ALL STATE AGENCIES

I. PURPOSE

To provide agencies with instructions for implementing an arbitration award affecting members of the NP-6 and P-1 bargaining units.

II. AUTHORITY

Article 13 and Article 9 of the contract between the State of Connecticut and the New England Health Care Employees Union, District 1199 and the recent Arbitration award discussed in OLR General Notice No. 2002-23 dated November 15, 2002.

III. MANDATORY OVERTIME

Under Article 13, Section 13 of the contract, mandatory overtime may be utilized only under emergency situations. Emergency is defined in the contract as a weather emergency or other event where the Governor close State offices, a lockdown in a correctional institution, or when the number of actual staff reporting to work is below minimum safe levels or legal requirements. The compensation rate for mandatory overtime is double the employee's regular hourly rate.

The arbitration award addressed the rate of pay for part-time employees who are mandated to work overtime. The double time rate does not apply for mandatory hours that do not exceed 40 hours of work time per week.

IV. AGENCY RESPONSIBILITIES

As a result of this award, agencies must:

Review records to determine when the double time rate has been paid or not paid.

 

Recognize that employees who have been paid double time while working less than 40 hours have been overpaid and follow the overpayment procedure of the contract.

 

Recognize that employees who have not been paid double time for hours worked over 40 hours when mandated have been underpaid. Such employees are to be properly compensated. This applies to full-time and part-time employees.

 

The retroactive date for paying those employees entitled to double time for mandated over 40 hours of work will be July 14, 2001.

V. OVERPAYMENT PROCEDURE

The overpayment procedure is found in Article 9, Section 17 of the contract. If it is determined that an employee has been overpaid, the employee will be notified in writing and the agency shall meet with the employee and the Union. The agency will explain how the overpayment occurred and discuss a repayment schedule. The agency shall arrange to recover the overpayment from the employee over the same period of time the overpayment was made unless the agency and the employee agree to some other arrangement.

VI. AGENCY REPORTING RESPONSIBILITIES

Agencies must notify the Comptroller's Payroll Services Division when an employee makes a repayment of wages. Agencies must provide proper documentation to the Comptroller's Payroll Services Division promptly upon the repayment by an employee of an overpayment of wages.

In addition, agencies must provide a statement to the employee making a repayment of prior year wages showing the amount of repayment, the date repaid and for what year the amount was included on the W-2. Agencies must send a copy of this statement to the Comptroller's Payroll Services Division.

VII. PAYROLL SERVICES REPORTING RESPONSIBILITIES

A. Repayment of Current Year Wages

 

For repayments of wages paid during a prior quarter in the current year, the Comptroller's Payroll Services Division will report the adjustment on Form 941 to recover income tax withholding and Social Security and Medicare taxes. The Comptroller's Payroll Services Division will report the adjustments on Form 941 for the quarter during which the repayment occurred.

 

B. Repayment of Prior Year Wages

 

For repayments of wages paid during a prior year, the Comptroller's Payroll Services Division will report the adjustment on Form 941 for the quarter during which the payment was made to recover Social Security and Medicare taxes. An adjustment will not be made for income tax withholding because the wages were paid during the prior year.

 

The Comptroller's Payroll Services Division will file Forms W-2c and W-3c with the Social Security Administration to correct Social Security and Medicare wages and taxes. The Comptroller's Payroll Services Division will not be correcting wages in box 1 on Form W-2c or income tax withholding for the amount paid in error. The Comptroller's Payroll Services Division will provide a copy of the W-2c to the employee.

 

NOTE: Wages paid in error in a prior year remain taxable to the employee for that year. This is because the employee received and had use of those funds during that year. The employee is not entitled to file an amended return (Form 1040X) to recover the income tax on these wages. However, the employee is entitled to a deduction (or credit) for the repaid wages on his or her income tax return for the year of repayment. Employees should be directed to IRS Publication 525, "Taxable and Nontaxable Income", for information on how to claim the deduction or credit. Publication 525 can be accessed on the IRS website www.irs.gov, ordered by calling the IRS forms number 1-800-829-3676, or picked up at an IRS office.

VIII. GENERAL

Questions may be directed as follows:

NANCY WYMAN
STATE COMPTROLLER

NW:CH

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