Date of Original Implementation: August 2011
Date of Last Revision: October 2011
The purpose of this policy is to state what is required to receive pay by direct deposit.
This policy applies to all employees eligible to receive their pay through direct deposit.
Direct deposit is the College’s preferred method for issuing payroll payments to College employees. The
purpose of this policy is to promote safe, confidential and convenient payments to College employees directly into their checking or savings account at a financial institution. Electronic deposit of funds can be made to any financial institution in the United States. Direct Deposit ensures that an employee’s net pay is deposited into their account(s) on payday, even if the employee is sick, on vacation or approved leave or during inclement weather.
Direct Deposit Requirements:
Currently, with the exception of part-time faculty, all employees and work study students are eligible for
To authorize, change or cancel a Direct Deposit of payroll an employee must complete and sign a “Direct Deposit Authorization” form and submit it to the Payroll Office. All requests for deposit to checking accounts must be accompanied by a voided check. All requests for savings account deposits must include the account number and the financial institution’s ABA routing number, which is supplied by the employee’s financial institutions. No direct deposits will be processed without a fully completed and signed form.
An employee may have a maximum of three automatic deposits, within three different financial
institutions. When completing the “Direct Deposit Authorization” form an employee may chose a flat dollar amount or percentage of payroll to be deposited to each account.
Initial authorizations and changes to authorizations will take one payroll cycle to become active once a live payroll check. Afterwards, the employee will receive a payroll voucher. Cancellations of direct deposit will be effective within two days after receipt by the Payroll Office of the request to cancel.
If a financial institution rejects any Direct Deposit during the test cycle, a live check will be issued and the employee will be contacted by the Payroll Office for clarification. Afterwards, if for some reason your financial institution rejects the deposit, a check is NOT automatically generated and payment may be delayed as the matter is resolved. This will happen when an employee closes an account without notifying the Payroll Office. Timely notification to the Payroll Office is required when an employee closes an account to avoid interruptions in direct deposit payment(s).
Individual Responsible for Implementation: Vice President for Finance & Administration and Controller.