Policy and Procedure

Subject Area:	Payroll
Policy Title:	Direct Deposit of Pay
Policy / Procedure No:	PAY003
Responsible Office:	HR/Payroll Service Center
Documents Needed:	Direct Deposit Authorization Form available on the HRM Website or at 250 CP

PURPOSE: To electronically transfer an employee's net pay into his/her financial institution of choice. Direct deposit is a proven method of payment that eliminates the need for paper paychecks.

SCOPE: All University employees.

DEFINITIONS: Direct deposit is the process of automatically transferring net pay into accounts at financial institutions via a highly reliable electronic payment system called the Automated Clearing House Network.

POLICY: Currently, all employees are required to be paid via direct deposit. Rather than receiving a paycheck on payday, the employee's net pay is automatically deposited into an account at the financial institution of choice.

Employees can view their pay information on-line use HRConnect

PROCEDURE:

1. Employee completes authorization form and sends it to the HR/Payroll Service Center.

2. HR/Payroll Service Center updates the employee's pay record and notifies the employee's financial institution via the automated pre-note process.

3. The employee's net pay is electronically transferred 24 hours before payday so the employee's bank account is credited on payday.

SPECIAL INSTRUCTIONS:

Direct Deposit Authorization forms must be completed in full and submitted to the HR/Payroll Service Center at least 7 working days before the actual affected payday. Employees should ask a customer service representative when the electronic transfer would begin.