| To: | Directors and Personnel/Payroll Staff |
| Subject: | Pending Mandatory Direct Deposit Policy |
| Sent Date: | 03/20/2009 |
On January 16, 2009, I announced to the Joint Finance-Appropriations Committee that my office will be taking steps toward implementing a Mandatory Direct Deposit policy. Our plan is to require all state employees paid through the State Controller's Office (SCO) payroll system to be paid by direct deposit, unless exempted by their respective appointing authority and our office.
There are several reasons for implementing such a policy at this time. One of the key reasons would be to reduce state expenditures. Mandating that all state employees participate in direct deposit would substantially reduce the costs involved in creating payroll warrants, distributing the warrants to the agency for further distribution, reissuing lost warrants, and tracking outstanding warrants. Furthermore, direct deposit is also a more efficient process for paying employees during unforeseen disasters.
The Division of Statewide Payroll plans to implement this policy in July 2009. Therefore, we are in the process of drafting the Mandatory Direct Deposit policy and would like your agency input on any business exemptions from such a policy that should be considered. Your agency’s response to the following questions would be greatly appreciated.
1. Do you have employee(s) who for some reason must receive a paper warrant?
2. If you have employees who must receive a paper warrant, what are the business reasons for this?
Please submit your agency’s response to dsphelp@sco.idaho.gov by March 27, 2009.
If your agency’s response is not received by March 27, 2009, it will be assumed that all employees in your agency are eligible to participate in the mandatory direct deposit process.
More information regarding this policy and direct deposit will be forthcoming. If you have questions regarding this memo, please contact Brandon Woolf at bwoolf@sco.idaho.gov.
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