| To: | Pesonnel/Payroll Contacts |
| Subject: | Voluntary Payroll Deductions to Credit Unions are to be Discontinued |
| Sent Date: | 02/19/2008 |
FROM: Brandon Woolf
Administrator
Division of Statewide Payroll
Recent concerns have been raised regarding the liability issues surrounding the voluntary payroll deduction process. Therefore, the State Controller’s Office has been investigating ways of eliminating those deductions that may be handled using other processing methods.
The Division of Statewide Payroll made modifications to the Direct Deposit action in February of 2005 to increase the number of financial institutions that may be used for Direct Deposit. In the past, employees were allowed to select one financial institution and the total net amount was deposited. Now, the employee has the option to designate up to two (2) savings and two (2) checking accounts to be deposited into. (A partial designated amount will be deposited into specified accounts and the remaining net pay amount will be deposited into another specified account).
It is the desire of the State Controller to utilize the direct deposit process for all employee payroll transactions to financial institutions. The above modifications have made this possible.
Effective with the pay date of March 21, 2008, all voluntary payroll deductions for Credit Unions will begin to be deleted. Those deductions are as follows:
501 – Capital Educators Fed C/U
505 – Idahy Federal C/U
513 – Pocahy Federal C/U
516 – Clearwater Federal C/U
519 – ESA C/U
522 – Public Employees C/U
525 – Idaho Central Public Employee C/U
527 – Potlatch #1 Federal C/U
528 – Panhandle Public Employee Fed C/U
531 – Orofino Comm. C/U
In an effort to make the change from payroll deduction to direct deposit, the Division of Statewide Payroll will no longer accept new credit union deductions. If an employee requests a new deduction to a credit union, please have them set up a new direct deposit transaction instead.
DSP plans to work with each agency separately to help them move their employees who currently have a credit union payroll deduction to direct deposit. Realizing that this change will affect employees and how they are paid, DSP will be contacting each agency over a period of time to coordinate the change with the employee and their credit union in an effort to keep the employee from having to go through the pre-note process when the deduction is deleted.
If you have any questions, please contact the DSP Help Desk at 334-2394.
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