| To: | Personnel/Payroll Contacts |
| Subject: | Modifications to Direct Deposit Process |
| Sent Date: | 10/30/2008 |
Currently, the Division of Statewide Payroll sends all new/revised direct deposit information (pre-notification file) to the banks/credit unions on a pay period basis (bi-weekly). Because of the time it took for this verification process, employees were required to receive a paper warrant for one pay period.
In an effort to speed up the verification process and allow employees to receive all of the benefits of direct deposit without interruption, DSP will now be sending pre-notification files to the banks on a nightly basis.
Beginning October 30, 2008, DSP will begin the new nightly processing with the banks. This new process will affect all new/revised direct deposit transactions effective for the Nov. 28, 2008 pay date forward.
The pre-notification process (even though the information is being sent nightly) will take six business days for banks to complete the verification process and return errors to DSP (three (3) business days for information to reach the employee's bank and three (3) business days for the bank to respond with correction or error notices to DSP).
Therefore, any direct deposit changes posted to the Employee Information System (EIS) six business days or more before final payroll is processed (Thursday of week prior to payday) will continue with direct deposit without interruption.
Example information processed without interruption/delay:
Effective for Pay Date: 11-28-2008
Action Created on IPOPS: 11-05-2008
IPOPS Action Posted to Record: 11-07-2008
Final Payroll Processing Date: 11-20-2008 (Thursday of week prior to pay date)
# of Business Days Between ‘Posted’ and ‘Processing’ Dates: 8 (Nov. 11 Holiday)
If the direct deposit action is posted to the EIS less than six business days before final payroll is processed, the employee will receive a paper warrant for one pay period (direct deposit delayed one pay period).
Example information processed with one pay period delay:
Effective for Pay Date: 11-28-2008
Action Created on IPOPS: 11-10-2008
IPOPS Action Posted to Record: 11-13-2008
Final Payroll Processing Date: 11-20-2008 (Thursday of week prior to pay date)
# of Business Days Between ‘Posted’ and ‘Processing’ Dates: 5
The employee will be left in pre-note status and will receive a paper warrant/check on the 11/28/08 pay date.
Additional text has been added to the Direct Deposit action in IPOPS. This text was added to further clarify the new process to the employee and/or agency personnel creating the action. It will appear on Direct Deposit actions created using either Self Service or actions originated by the agency.
Example of the new information on the Direct Deposit action in IPOPS:
- It takes six business days for the financial institution to verify the Bank and Account Codes.
- If payroll is processed during this verification period, a paper warrant may be issued.
- Once the new direct deposit information has posted to the employee's record, more detailed information regarding the expected direct deposit date will be sent via e-mail. (A valid state e-mail address is required).
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In addition, if the employee has a valid e-mail address on IPOPS the application will send an e-mail notification to them with the exact pay date their direct deposit will take effect.
Example of the e-mail the employee will receive once the direct deposit action has posted on the system:
Subject: Processed Direct Deposit Action |
This is a generated message please do not reply to the sender.
Your new direct deposit information has been processed and should take effect on the MM/DD/YY pay date.
Note: If your financial institution discovers any of this information to be in error you will receive a separate notification. |
NOTE: When a correction or error notice is sent to DSP from the employee’s bank, DSP staff will change the status of the employee's direct deposit to 'N – No Direct Deposit’ and send an e-mail to the agency notifying them of the error. It will be necessary for the agency or employee to make any corrections and resubmit the action on IPOPS. Once the correction is made the entire pre-notification process will begin again.
If you have any questions about this new process, please contact the DSP Help Desk at 334-2394.
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