Frequently Asked Questions
General Questions:
Q: How reliable is Direct Deposit?
A: The State Controller’s Office (SCO) has been successfully providing Direct Deposit to State of Idaho employees since 1980.
Q: How do I sign up for Direct Deposit?
A: Depending on your agency preference, you may use the Employee Self Service feature in IPOPS to enter your Direct Deposit information yourself, or submit your request to your agency human resources or payroll representative.
Q: How do I use the Employee Self Service Feature in IPOPS?
A: More information on this feature can be found on the SCO Web site.
Q: What information do I need to provide my agency human resources or payroll representative if I have to set up my Direct Deposit through them?
A: In most cases your agency human resources or payroll representative will ask for a copy of a blank check that has been marked “Void.” An easy way to do this is to photo copy a blank check and then write void on the copy, thereby saving a check for your use.
Q: Do I have to use a particular financial institution for Direct Deposit?
A: No. You may use any eligible financial institution in the United States that is a member of the ACH Network. Eligible financial institutions include banks, credit unions, and savings banks.
Q: Can I divide my pay among different accounts if I use Direct Deposit?
A: Employees may select up to two checking and two savings accounts to divide their pay through Direct Deposit.
Q: Can I have some of my pay deposited into an account and have the rest paid on paper warrant (check)?
A: No. When participating in Direct Deposit, the full net pay amount must be made through Direct Deposit.
Q: What if I do not have an account with a financial institution?
A: If you do not have a checking or savings account, review financial institutions and select the financial arrangement that is best for you in terms of convenience, safety, service, interest on your deposits, and cost of service. Many financial institutions now offer either a free or an economy type account to employees who receive their pay by Direct Deposit.
Q: As a new participant, how will I receive my first paycheck?
A: Your first pay may be made by paper warrant (check) or Direct Deposit, depending upon when you submitted your Direct Deposit IPOPS action and when payroll is processed. Six business days are required to complete the pre-notification (also referred to as 'pre-note') process and establish your Direct Deposit. SCO sends a test transaction with all new or revised account information to the federal Automated Clearing House (ACH) on a nightly basis. The test transaction is verified to ensure the account information entered is valid prior to allowing funds to be processed through as Direct Deposit. Payroll is processed during the non-payday week and final is generally run on Thursday, the week before payday. If the test transaction is successful prior to processing final payroll, your next scheduled pay will be by Direct Deposit. If you have not completed the 'pre-notification' process prior to processing final payroll, your first paycheck will a paper warrant (check). The warrants are mailed directly to employees on payday.
Q: How do I know when my payment has been deposited?
A: Your account balance can be verified with your financial institution by phone or on-line.
Q: When do I have access to the money?
A: Typically, your payment is available at the opening of your financial institution on payday. If your money is not in your account on payday, you should contact your financial institution.
Q: What if I want to make a change in financial institutions?
A: To make a change, enter the new information using the Employee Self-Service feature in IPOPS or submit a request to your agency human resources or payroll representative. All changes except the dollar amount to an existing Direct Deposit account will require the pre-notification process to be performed. At least six business days are required to complete the pre-notification process. Payroll is processed during the non-payday week and final payroll is generally run on Thursday, the week before payday. Your next scheduled pay after submitting the direct deposit change will be delivered one of three ways:
- If you changed only a dollar amount on your direct deposit or have successfully completed the pre-notification process prior to processing final payroll, your next scheduled pay will be directly deposited according to your new instructions.
- If your change was submitted or approved after final payroll is processed, your next scheduled pay will be deposited into your old account. Do not close your old account until you have successfully completed the pre-notification process.
- If your change was submitted and approved before final payroll is processed and you have not completed the pre-notification process, your next scheduled pay will be a paper warrant (check). The warrants are mailed directly to employees on pay day.
If you have any questions about this process or are concerned about how you will receive your next scheduled pay, please contact your agency human resources, payroll representative, or our office before submitting the change to your direct deposit.
Q: I don’t want the joint owner of my checking account to know how much money I make. How can I participate in Direct Deposit?
A: At this time, employees can have up to two checking and two savings accounts on Direct Deposit.
Q: How does Direct Deposit affect my current payroll deduction(s)?
A: Direct Deposit does not affect your current payroll deductions.
Q: What if I close my account?
A: If you close your account and you do not stop your Direct Deposit through Employee Self-Service or your agency human resources or payroll representative you will have to wait until your financial institution sends the money back to the SCO. This process takes up to 2-4 business days. Once the SCO is notified, a check will immediately be issued to the employee.
Q: If I have a problem with Direct Deposit, whom should I call?
A: Problems with Direct Deposit are rare. In fact, you are much more likely to have a problem with a paper warrant (check). However, if a situation should arise, contact your financial institution or your agency human resources or payroll representative. The SCO is not able to make changes to your Direct Deposit account information.
Q: If I sign up for Direct Deposit, how can I be sure no one will have access to my account?
A: Direct Deposit is a confidential way to send and receive payments. Although the SCO does have a limited ability to reverse your Direct Deposit payment, it can only access funds for a limited time that were deposited in error. Fewer people see your account information with Direct Deposit than with a paper warrant (check).
FAQ about SCO’s Mandatory Direct Deposit Policy
Q: Is Direct Deposit a requirement of the State?
A: Effective August 1, 2009, the Office of the State Controller established a Policy requiring all state employees paid through a payroll system administered by the State Controller, unless exempted by the State Controller, to be paid by Direct Deposit. The Policy may be viewed at the State Controller’s Web site. http://www.sco.idaho.gov
Q: Are there any Federal Regulations that apply to Direct Deposit?
A: Regulation E issued by the Board of Governors of the Federal Reserve System pursuant to the Electronic Fund Transfer Act (15 U.S.C 1693 et seq.) specifies that Direct Deposit can only be required if the employee is able to select the financial institution of his/her choice.
Q: What types of exemptions are recognized?
A: There are two types of exemptions recognized by the Policy:
Q: What is a business exemption?
A: The State Controller may allow for a ‘business exemption’ from Direct Deposit to accommodate special needs including, but not necessarily limited to, reissued warrants, corrected payments, employees not eligible for Direct Deposit.
Q: What is a personal exemption?
A: The State Controller may allow for a Direct Deposit ‘personal exemption’. If an employee is unable to secure an account at an eligible financial institution, or if he/she believes that participation in Direct Deposit will result in an extreme hardship, the employee may request an exemption using the Direct Deposit Personal Exemption Request Form. The form may be downloaded from the State Controller’s Web site. http://www.sco.idaho.gov
Q: Can an agency grant a personal exemption?
A: No. Personal exemptions can only be granted by, and are at the discretion of, the State Controller based on the evidence provided by the employee.
Q: Why would an employee not be able to acquire an account with an eligible financial institution?
A: The personal exemption provision is primarily to accommodate those employees who are unable to obtain an account. Some employees are unable to acquire an account due to a low credit rating or a history of writing non-sufficient funds (NSF) checks.
Q: What is considered an extreme hardship?
A: There may be unique unforeseen reasons that an employee may encounter that may require special consideration by the State Controller. Such reasons will be rare. Personal preference is not considered an extreme hardship.
Q: Is not wanting to pay the costs associated with having an account with an eligible financial institution considered an extreme hardship?
A: No. There are many eligible financial institutions that offer either free or economy accounts to accommodate Direct Deposit. Any costs incurred for having an account are normally much less than the fees charged by check-cashing companies.
Q: Is not wanting my spouse or other joint account holder to know how much I am paid considered an extreme hardship?
A: No.
Q: What will happen if I fail to participate in Direct Deposit?
A: All paper warrants (checks) will be mailed directly to the employee from the SCO instead of being delivered to the agency for distribution. Paper warrants will be mailed by the SCO on payday. The employee is advised that the State assumes no responsibility for any delay in receiving a paper warrant (check) via the United States mail or its equivalent. Should a paper warrant (check) have to be reissued due to the original being lost, the employee may have to wait seven to ten business days, before a replacement check can be issued and mailed.
Q: When should I submit a Direct Deposit Personal Exemption Request form?
A: If you elect to submit a Direct Deposit Personal Exemption Request Form, it should be submitted to your agency human resources or payroll representative within 30 days of hire or appointment. Existing employees must submit requests to the SCO no later than September 1, 2009.
Q: What evidence should be submitted with the Direct Deposit Personal Exemption Request Form?
A: If your request is due to not having an account with an eligible financial institution and the inability to obtain an account, you must obtain a letter or other documentation from an eligible financial institution stating that you have been denied an account. If your request is due to a specific extreme hardship, you should address a letter to the State Controller explaining why you believe you should be granted a personal exemption. In either case, a letter/documentation should be attached to the request form and submitted to your agency human resources or payroll representative.
Q: When will the SCO respond to my Direct Deposit Personal Exemption Request form?
A: SCO will respond to your employing agency within 15 business days of receipt of the request form. The earlier a request form is submitted, the earlier the response will be made, allowing the employee time to plan accordingly.
Q: If I am granted a personal exemption from Direct Deposit, how will I be paid?
A: You will be paid by paper warrant (check). The paper warrant (check) will be mailed by SCO to the address that exists on your personnel record. The paper warrant (check) will be mailed on payday. The employee is advised that the State assumes no responsibility for any delay in receiving a paper warrant (check) via the United States mail or its equivalent. Should a paper warrant (check) have to be reissued due to the original being lost, the employee may have to wait seven to ten business days before a replacement check can be issued and mailed.
Q: If I am denied a personal exemption from Direct Deposit, am I required to participate in Direct Deposit?
A: Yes.
SCO Version 7/31/2009 |