Direct Deposit
What is Direct Deposit?
Direct Deposit is the electronic transfer of a payment from a company or organization into the checking or savings account of its employees. The most popular application of Direct Deposit is for payroll, however it can also be used for other types of payments.
Along with Direct Deposit state employees are also encouraged to view their pay stub online. With the online pay stub, employees are able to view their pay information the Friday before payday without having to wait for the agency to deliver a paper record. Viewing pay stubs online also saves tax dollars.
What are some of the advantages of using Direct Deposit?
Direct Deposit of your payroll wages makes good sense! Here are a few great reasons how you will benefit from Direct Deposit:
Your biweekly pay is deposited to your checking and/or savings account – always there and always on-time
You will save valuable time by eliminating trips to your financial institution
It is more confidential than sending your pay check in the mail and leaving it in an unsecured mail box
Saves thousands of your tax dollars
It eliminates costly printing and mailing of payroll warrants thereby saving thousands of your tax dollars
Environmentally responsible by not using valuable resources such as paper
General information
The Financial Institution Code (routing number) is always nine digits in length.
The Account Number can be up to 17 characters (both numbers and letters).
The Direct Deposit process is based on the employee's request to have his/her payroll earnings deposited automatically in their account.
The employee's total net pay will be deposited.
At this time, employees can have up to two checking and two savings accounts on Direct Deposit, per pay period.
When the Direct Deposit is processed to establish or change a financial institution or account number, the EIS system will put the employee's Direct Deposit information in a ‘pre-notification’ status. The pre-notification process will require up to six business days, during which time the financial institution will verify the routing and account number and account type (checking or savings). Payroll is processed during the non-payday week and final payroll is generally run on Thursday, the week before payday. If the employee is still in pre-notification status when payroll is processed, the payment will be made by paper warrant (check) for that payday. The warrants are mailed directly to the employees on payday.
If the financial institution finds a problem with the financial institution code (routing number), account code number, or account type during the pre-notification status, the Division of Statewide Payroll will notify the agency. Employees and/or agencies will then have to re-submit another Direct Deposit action to correct the mistake.
When the pre-notification process is successful, all subsequent pay stub information will be available to view online.
When an employee transfers to another agency, the employee must re-establish the Direct Deposit, even if the Direct Deposit is to the same financial institution and account number used at the previous agency.
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