Direct Deposits for Vendors Frequently Asked Questions
Direct deposit is an electronic method of payment where your funds are deposited directly into your bank account. No paper warrant is issued.
Easy – Receiving your payments by direct deposit eliminates check handling and manual deposits (mail room or the post office) where checks can be misdirected or lost. The money is credited directly to your account. Fast – Payments by direct deposit go directly from the State of Idaho to your account.Secure – Direct deposit uses the Automated Clearing House (ACH) network – the same network used by your bank to handle transactions with other banks. When direct deposits are credited to your account (two days after the payment is processed), the funds become available immediately.
Direct deposits are much safer than warrants because they eliminate:
Lost in transit warrants
Cancel requests due to missing warrants
Yes. The Idaho State Controller’s Office has only a few designated staff who have access to update or view vendor bank information. Bank account information is not available to any agency personnel.
Not necessarily. Tax refunds and certain benefits payments from Idaho Department of Health and Welfare are processed using a different vendor list than that what is used to process other regular invoice type payments. Also, if your business has more than one ‘remit to’ address or more than one business name, you must set up each address or business name separately to receive direct deposit payments for each. However, you can assign different bank accounts to each unique address or business name.
Complete and sign the Combined Substitute W9/Direct Deposit Authorization Form and attach a voided check (not a deposit slip) or bank verification of your checking or savings account number. Mail the form and documentation to:
Vendor CoordinatorIdaho State Controller’s OfficePO Box 83720Boise, ID 83720-0011
After the forms and documentation are reviewed, your record will be set up in the Statewide Accounting System known as STARS. Idaho State Controller’s Office (SCO) personnel will then request verification of the bank account information directly from your financial institution. The verification process can take three days. When the verification process is completed, you will then be paid by direct deposit. Until the verification process is completed, payments will be made by Idaho State warrant.
A voided check provides the information needed to assure that your direct deposit is sent to the correct account at your financial institution. If you chose to not provide a voided check, then your financial institution can provide the same information (ACH routing number, account number and type of account) in letter format on their letterhead.
For any one address or business name there can be only one bank account assigned. Arrangements should be made with your financial institution to transfer funds from the bank account you designate for direct deposits to other accounts as necessary.
To update your bank account information, complete a State of Idaho Combined Substitute W9/Direct Deposit Authorization Form. Mail these forms to the address below. To update your business name, business type or mailing address, send an e-mail to firstname.lastname@example.org. Please include the vendor name and a phone number in the e-mail so that we can contact you with any questions. We do not recommend including your EIN or social security number in any e-mail. Updates can also be mailed on company letterhead (not applicable to individuals) to:Vendor CoordinatorIdaho State Controller’s OfficePO Box 83720Boise, ID 83720-0011To update your EIN, complete a new IRS Form W9 or a State of Idaho Combined Substitute W9/Direct Deposit Authorization Form and send it to the address above.
If your original account is closed, the funds are returned through the ACH network to the Idaho State Treasurer’s Office and credited to the agency’s account. If this should happen, a warrant will be mailed to you. While the returning and reissuing is done as quickly as possible, the process will delay your receipt of the payment by a week or two.
Payment information is available on the State Controller’s Web Vendor Remittance Advice service. Direct deposit warrant numbers on the remittance advice begin with a 0 (zero). Also see the Remittance Advice FAQs on the Vendor Services Web site menu.What if I cannot identify the payment from the remittance information?Call the originating agency at the telephone number provided on the remittance advice.
Each financial institution has its own internal procedures. Please contact your financial institution for more information.
The funds become available two days after the payment has successfully processed through STARS. For example, if the payment is processed on Monday, the funds will be available on Wednesday.
A warrant is a promise to pay and is due only if cash is available at the time of presentment. (By contrast, a check is a demand draft that is due immediately upon presentment for payment.)
No. Although the Idaho State Controller’s Office (SCO) in encouraging participation, direct deposit is a voluntary program. The SCO believes that the advantages and benefits of direct deposit (eliminating check handling and delays, plus strengthened internal controls and improved cash management opportunities) are significant. If you do not participate in direct deposit, warrants will be printed and mailed as they are now and payment notification will remain unchanged.
You can contact the Vendor Coordinator at email@example.com or (208) 332-8827.