Saint Louis University

SAINT LOUIS UNIVERSITY

Direct Deposit Policy

 

Version Number: 2

Effective Date: 4/1/2012

Responsible University Official: Vice President/Human Resources

 1.0 INTRODUCTION 

Saint Louis University administers payroll fund distribution through a direct deposit system that allows employees to deposit directly a primary and up to two secondary accounts. This allows for immediate access to funds from a number of banking locations, is more secure for the employee, and reduces costs of processing paper checks. Direct deposit enrollment is maintained by the employee via Banner Self Service and participation is required for all active employees. Employees who do not have access to a personal computer may use one of the computer labs on campus or may use a computer in the Human Resources lobby in the Wool Center.

 2.0 PURPOSE 

To outline the direct deposit process employees must follow in Banner Self Service in order to change, add, or delete direct deposit allocations.

 3.0 PERSONNEL AFFECTED 

All University employees or anyone paid via payroll services, with the exception of employees on the Madrid Campus.

 4.0 DEFINITIONS 

Pre-note: Term used when new bank account(s) are being setup by an employee for direct deposit. The pre-note process tests the bank routing number and bank account number with the recipient financial institution and will return an error if the routing number is inaccurate, or the account number cannot be found, or the account is closed.

Priority: The order in which money is deposited into an employee's bank account for their direct deposit.

Last Priority: The highest (3 being the highest) numbered priority, however, if the employee is only depositing to two accounts the last priority should be number 2, if the employee is depositing to one account the last priority will be number 1. Employees should setup their primary account (where the remaining net pay is deposited) as the last priority. For example: if an employee is depositing $100 into their savings account and the rest of their net pay is to go to their checking account, priority 1 would be the savings account and priority 2 should be the checking account.

Remaining Amount: The amount of net pay left after deposits into any secondary (other) accounts. This is also referred to as 100% of net. For example: If after deductions the employee's net pay (check/direct deposit total) is $4,200 and the employee has $100 deposited to savings, the remaining amount would be $4,100 and would be deposited into the account that is setup for the remaining amount or 100%.

Primary Account: The account where the employee wants the majority (remaining amount or 100% of net) deposited. This is usually an employee's main checking account.

Secondary Account(s): Accounts where the employee wants set dollar amounts deposited to, these are often savings accounts or a secondary checking account.

Bank Routing Number: Typically a nine-digit number at the left hand bottom of a check. For savings accounts or newly opened accounts, the employee should verify the routing number with their financial institution. Most banks will provide a printed card with the bank routing number and account number to new account holders.

Account Number: On a check, this is typically the set of numbers to the right of the routing number and to the left of the printed check number. This number can be no longer than seventeen (17) digits long. Most banks will provide a printed card with the bank routing number and account number to new account holders.

 5.0 POLICY 

Direct deposit enrollment is maintained by each employee via Banner Self Service and participation is required for all active employees. Under extenuating circumstances, if an employee is not able to open a bank account, they may want to consider contacting US Bank (lower lever, Busch Student Center) to inquire about how to remedy the issue and successfully open an account. If, after working with US Bank, the employee is still unable to obtain an account, an email must be sent to payroll services (payroll@list.slu.edu) which indicates that they have been denied a bank account. Employee's who are not active in direct deposit, either during the pre-note process or unable to open a bank account, will have their paycheck mailed to their permanent address of record in Internet Native Banner (INB). The checks will be mailed on payday. If a mailed check is lost or mailed to an incorrect address, the employee will not be allowed to request a replacement check for a minimum of 7 business days, no exceptions.

 6.0 RESPONSIBLITIES 

Employees are required to use Banner Self Service to enroll in payroll direct deposit. This process also sets up the direct deposit of employee reimbursements made by accounts payable. If an employee does not have access to a personal computer, computer access will be available in the Human Resources lobby on the first floor of the Wool Center. Employees must know their SLU Net ID and Password to access Banner Self Service, if not known, the employee may contact the information technology services helpdesk at 977-4000. Currently, the first payroll payment to an employee is a paper check mailed to their permanent address via the US Postal Service; this is to allow for a pre-noting of the employee's account to avoid problems with closed accounts, incorrect routing numbers or account numbers. However, in some instances, depending on when the employee sets up their bank information, the primary account could be pre-noted in time for the first pay check to be a direct deposit.

Each employee is responsible for maintaining accurate, up to date, direct deposit information in Banner Self Service. An employee may elect to have payroll monies deposited in up to three different accounts, with one account being regarded as the primary account where the remaining net of the employee paycheck is deposited after deposits to secondary account(s). Allocations not updated by the employee in a timely manner may result in a delay of payment while the erroneously deposited funds are recovered from the financial institution. It is the employee's responsibility to verify that payments have been credited to their account(s) and the University assumes no responsibility for overdrafts incurred by employee on their direct deposit.

 7.0 PROCEDURES 

The following procedures are based on the employee logging into Banner Self Service and accessing the Direct Deposit Allocation options from the Pay Information menu on the Employee tab. The University accepts no liability or responsibility for the employee's maintenance and updating of direct deposit information. For each account to be setup, you will need your bank's routing number and your account number.

New Hire or Rehire Employee with No Previously Active Direct Deposit(s):

  1. Access Direct Deposit Allocation screen (under Pay Information ) in Banner Self Service.
  2. In the center of the bottom of the page, click on Add New Direct Deposit.
  3. Setup account allocation(s):
    • Secondary Account(s), if you are going to have money deposited into more than one account:
      • Scroll down to the Add Allocation section of the screen.
      • Enter the Bank Routing Number and press the "Tab" button to go to the account number box. When you "Tab" to the Account Number box, notice that your bank name will populate to the right of the Bank Routing Number box.
      • Enter Account Number, press "Tab" button.
      • Select Account Type from drop down box, checking or saving, press "Tab" button.
      • Type in the dollar amount you want deposited into this particular account, select Amount or Percent from drop down box. Employees should only use a fixed dollar amount on secondary account(s). Payroll services does not suggest setting up a percentage of net (remaining amount) on secondary accounts. 
      • Click on the Save button. 
      • Repeat above steps to add another Secondary Account, if you chose.
    • Primary Account:
      • Scroll down to Add Allocation section of the screen.
      • Enter the Bank Routing Number and press the "Tab" button to go to the account number box. When you "Tab" to the Account Number box, notice that your bank name will populate to the right of the Bank Routing Number box. 
      • Enter Account Number, press "Tab" button.
      • Select Account Type from drop down box, checking or saving.
      • Since you are setting up your primary account in this step, click on the "Remaining Amount" box, you will skip the Amount or Percent option.
      • Click on the Save button. 
    • Once saved, you will notice that all newly added accounts will indicate a pre-note status. Pre-note status does not mean that your account is active, money will not be deposited to a pre-noted account until it has been verified, which can take up to two pay periods.
    • Review priorities and make certain that your highest numbered (3 if you are using three accounts, 2 if you are using two accounts, and 1 if you are using 1 account) priority is your primary account with a 100%, or remaining balance, allocation.

Adding Direct Deposit Allocations:

  1. Access Direct Deposit Allocation in Banner Self Service.
  2. Scroll down to the Add Allocation section of the screen.
  3. Enter the Bank Routing Number.
  4. Enter Account Number.
  5. Select Account Type from drop down and choose either checking or saving.
  6. Remaining Amount, skip this box for secondary account(s).
  7. Amount or Percent. If this is your primary account setup, you should select 100% as your allocation; otherwise, we suggest only using a dollar amount on secondary accounts in order to avoid confusion or the possibility of accidentally shorting your primary account.
  8. Click on Save. Repeat if you wish to add another account.

Inactivating an Active Direct Deposit Allocation:

  1. Access Direct Deposit Allocation in Banner Self Service. 
  2. Centered at the bottom of the screen is the option to Update Direct Deposit Allocation, click on this option.
  3. Click on the bank name of the account you will be inactivating.
  4. Check the Inactivate box.
  5. Click on Save.

For all changes, additions, and deletions, employees should use View Proposed Direct Deposit Allocation to verify your setup(s).

 8.0 REFERENCES

US Bank

 9.0 APPROVAL SIGNATURES

This policy was approved by the President and the executive staff of Saint Louis University.