Scope

The University strongly encourages the enrollment of all existing employee’s in the Direct Deposit program. All newly hired employees must participate in Direct Deposit for receipt of payroll funds. Currently, the first payment to an employee is a paper check mailed to their permanent address via US Mail, this is to allow for a pre-noting of the employee’s account to avoid problems with closed accounts, bad routing numbers or bad account numbers. Returning employees (student workers, graduate assistants, Summer Faculty) have the option of completing a Reinstatement Authorization form that allows them to confirm, in writing, that their previously active Direct Deposit information is still accurate, and that they are authorizing the University to waive the Pre-Note process, thus reinstating them into Direct Deposit Program without having their first paycheck mailed to their permanent address. Employees are solely responsible for notifying Payroll Services of any changes in their Banking Information, such as, account number changes, closed accounts, or bank routing number changes due to a bank merger.

Procedure

Initial Enrollment: Employee completes a Direct Deposit Authorization Agreement, which is turned into Payroll Services with a blank, voided check or deposit slip for each account to which the University will be depositing funds. An employee may elect to deposit funds in up to three (3) different accounts, two (Secondary and/or Additional Secondary Account) of which the employee may have a specific dollar amount designated. The remaining net pay will be deposited into the employee’s Primary Account designation.

Once the form is turned in to Payroll Services, it will be setup as indicated by the Direct Deposit Authorization Agreement with a Pre-Note Status for the first payroll check. A paper check is created by the system which is mailed to the employee’s permanent (MA) address in the database via the US Postal Service. If Payroll Services receives a reject from the bank on an employee’s pre-noted transaction, the employee will be contacted to obtain correct information, and the record will have to be Pre-Noted again on the next payroll cycle.

Reinstatement: Employees that have a short break in service at the University, off for the summer, and that have previously been successfully enrolled in Direct Deposit may complete a Reinstatement Authorization form. The employee must attach either a printed, initialed copy of their Direct Deposit Allocation screen from Self Service Banner or an initialed copy of the GXADIRD screen obtained from Payroll Services, which shows your previous Direct Deposit enrollment information and amounts or percentage designations. Employee will be verifying, or certifying, that they have reviewed that account and bank information and it is correct and may be reactivated, without pre-note, for the exact same allocations they previously used.

Change or Add A Bank Routing or Account Number for Primary Account: The employee should complete a new Direct Deposit Authorization Agreement, attaching a blank and voided check or deposit slip, completing only the “Primary Account for Deposit” section of the agreement. If the employee has money currently being deposited into any “Secondary Accounts” then the employee should write the word “Same” in the “Secondary Account for Deposit” section and/or “Additional Secondary Account for Deposit” section of the agreement. The Primary Account will be Pre-Noted, and the employee will receive a paper check via US Postal Service to their permanent mailing address (MA Address) for the amount of money that would have been deposited into the Primary Account.

Change or Add A Bank Routing or Account Number for one, or both, Secondary Account(s): The employee should complete a new Direct Deposit Authorization Agreement, attaching a blank and voided check or deposit slip, completing only the “Secondary Account for Deposit” section, and the “Additional Secondary Account for Deposit” section, if applicable. If the employee does have money currently being deposited into a “Primary Account”, which is required, then employee should write the word “Same” in the “Primary Account for Deposit” section of the agreement. The Primary Account Direct Deposit Allocation will remain active for the Pre-Note to any one, or two, Secondary Accounts. No check will be produced, or mailed, as the entire net pay of the check will be directly deposited into the Primary Account.

Withdrawal or Inactivation of Direct Deposit: Employee is required to provide written, advanced notice of their instructions to withdraw any, or all, Direct Deposit Allocations. Withdrawals not received in time for payroll processing could result in a delay of receipt of funds as those funds must first be recovered, or returned, by the bank. The withdrawal request should indicate if the employee wants to withdraw completely from Direct Deposit, or just to remove any or all Secondary Account designations. Employees with a break in service, no currently active job in the Human Resource System, will have their Direct Deposits automatically inactivated by Payroll Services.

Page content owned by: Payroll Services

Revised: Wednesday, 16 May 2007

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