State of California

  M E M O R A N D U M

  REFERENCE CODE:
  2002-054

  DATE:
  August 28, 2002

  TO:
  Employee Relations Officers
  Personnel Officers
  Accounting Administrators
  Claim Processing Staff

  FROM:
  Department of Personnel Administration
  Labor Relations Division

  SUBJECT:
  Bargaining Unit 16 MOU Provisions on Continuing Medical 
  Education Leave

  CONTACT:
  Robert Losik, Senior Labor Relations Officer
  (916) 324-0476, CALNET 454-0476
  FAX: (916) 322-0765
   
  Email: RobertLosik@dpa.ca.gov


  The current contract for Bargaining Unit 16 provides for 
  payment of miscellaneous expenses related to continuing 
  education such as tuition, registration, books, etc.  
  (Article 9, Section 9.7, C, D, and G).
  
  This benefit fails to meet the IRS requirements for tax-
  free training reimbursements and the provisions of an 
  accountable plan.  Thus, all payments made under the 
  continuing medical education items are taxable income and 
  must be reported as such to the State Controller's Office 
  in accordance with Awards/Bonuses/Incentives.  Please refer 
  to Payroll Procedures Manual Section I-127 for reporting 
  instructions.
  
  
  
  
  Gloria Moore Andrews
  Chief of Labor Relations