NYS Healthcare Workforce Bonus and effect on 401(k) compensatiom

[boccfam]

Has anyone come across whether the NYS HWB program is required be included in compensation for deferrals and match?  I would have thought since it is being run through W2 wages (although exempt from state taxes) it would be treated like any other "bonus" and depending on the definition of compensation, included for deferral and match.  However there was specific language from the NY DOH that says "Employers are not requird to match 401k or other retirement accounts for the bonus payments under the HWB statute".  I am well aware that federal trumps state law but as this is being pushed out imminently I would like some more solid footing to consult my NY clients.

Comments appreciated.

[VincentBocchinfuso CPC]

Yes