Policy on Direct Deposit and Electronic Payment of Net Pay

Policy Number: Number to be assigned later

Effective Date of Policy:November 1, 2009

Overview

All employees are required to receive their net pay electronically.

Purpose

Section 4-601.e.2 of the Appropriation Act (Chapter 879, 2008 Session) authorizes the Comptroller of Virginia to mandate payment of wages or salaries made to state employees to be via electronic payment. This policy was adopted in compliance with the State Comptroller’s August 1, 2008, mandate that payment of wages and salaries to state employees be made electronicallyand has been revised to include all employees, regardless of hire date.

Being paid electronically benefits both the employee and the University.

Benefits to the employee include:

No lost or stolen checks

No unclaimed or un-cashed checks

Assurance that payments will be automatically deposited while on vacation or sick leave

No waiting for the check to arrive in the mail, your pay is reliably available on pay day

No time is wasted in bank lines waiting to cash or deposit your check

Promotes good money management because pay may be deposited into more than one account

No need to carry cash or write checks, pay may be deposited directly to a debit card

Benefits to the University include:

Elimination of forged, stolen, or lost checks to be researched and replaced

Reduced operating costs-no postage costs for mailing checks

Reduced processing time for check reconciliation

Improved productivity

Policy Detail

There are twomethods of electronic payment available, a direct deposit to an employee’s selectedpersonal savings or checking account oran electronic deposit to the Commonwealth’s payroll debit card (EPPICard). All prospectiveemployees are notified upon hire that they must adhere with the policy and submit the Employee Direct Deposit Authorization Form or sign up for the Commonwealth’s EPPICard. Failure to comply could result in disciplinary action, including removal.

Employees establish a direct deposit to a bank account by completing the Employee Direct Deposit Authorization Form. Employees must provide a voided check with the form for a checking accountdeposit. For savings accounts, the employee musthave a bank representative complete the direct deposit form and provide the routing number and account number for the savings account. Employees are responsible for notifying the Payroll Office of any changes in their direct deposit via a new Employee Direct Deposit Authorization Form.

Employees choosing to have their pay deposited to the Virginia EPPICard debit card mustcomplete the Payroll Enrollment Form on the Virginia EPPICard website,

. The Program Fact Sheet highlights the benefits of being paid on an EPPICard debit card and the Disclosure Statement specifically explains the card’s Terms of Use.

Direct deposit authorizations and pay card enrollment forms will be processed according to payroll schedules.

Specific exceptions to this policy include: employees under the age of 18, employees without a social security number, Federal Work Study student employees, and employees changing financial institutions (employees changing financial institutions may receive a pay check for two pay periods while establishing a new bank account), employees who have their direct deposit amount subsequently transferred in its entirety based on a standing order to an international account.

Approvals

This policy is issued by Finance and approved by Allyson Moerman, Assistant Vice President for Finance and Controller;July 22, 2008.

Revision

  1. By Lynda Worthy, Payroll Manager, July 10, 2008
  2. By Allyson Moerman, Assistant Vice President for Finance, July 13, 2008
  3. By Lynda Worthy, Payroll Manager, August 28, 2008
  4. By Lynda Worthy, Payroll Manager, November 1, 2009

Page 1 of 2

C:\Documents and Settings\lworthy\My Documents\WORDDOCS\Payroll Policies and Proceedures\Policy on Direct Deposit and Electronic Payments of Net Pay.doc