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Direct Deposit - Payroll & Non-Payroll Payments
Revised: 06/03
FSS/PPS No. 03.01.12
Issue No. 2
Reviewer: Director of Accounting
Effective Date: 06/01/01 (E5Y)
Review Date: 06/06
01. PURPOSE
| 01.01 | This PPS establishes policies and procedures for processing payments to employees for payroll and non-payroll items via electronic direct deposit. |
02. POLICY
| 02.01 | Direct Deposit is available to all employees, including wage and student employees. This service is not affected by regular (i.e., benefits-eligible) status. |
| 02.02 | Payments will be made via Direct Deposit for both payroll and non-payroll items. Payroll payments include salaries, as well as performance and achievement awards. Non-payroll items include payments for Travel Vouchers and Payment Requests for expense reimbursements. At this time, financial aid payments to students cannot be made via Direct Deposit and are not included in the scope of this policy. |
| 02.03 | Payments to employees choosing Direct Deposit will be made to the same bank/financial account for both payroll and non-payroll items. There is no option to be on direct deposit for payroll and not on direct deposit for non-payroll items or vice versa. |
| 02.04 | Changes to the employee's Direct Deposit record (including selection of a financial institution to receive the deposit) may be made only one time per month. It is not acceptable for an employee to be taken off and added back onto Direct Deposit within the same payroll period. |
03. PROCEDURES
| 03.01 | An Authorization Form must be completed by the employee, requesting that payments be made via Direct Deposit. Forms are available from the Payroll Office or on the Payroll Office website at http://www.txstate.edu/payroll. A voided check must be provided to assure accuracy of account and ABA transit numbers. Termination of Direct Deposit or Changes to an employee's Direct Deposit information requires a separate Authorization Form noting the requested termination date and/or other changes. The direct deposit authorization will automatically terminate 12 months after the employee's termination date if no form is submitted. Thus, a direct deposit authorization does remain effective during the summer months (even if student employees are not enrolled and/or working at the University). | ||||||||||||
| 03.02 | Deadlines and Effective Dates: | ||||||||||||
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| 03.03 | E-Mail Notices - Employees will be notified via a University e-mail account of the Direct Deposit of non-payroll payments. No other form of notification will be sent. If applicable, a listing of multiple Travel Vouchers and/or Payment Requests will be included in the e-mail message. | ||||||||||||
| 03.04 | Student/Wage Employees - Student/wage employees choosing Direct Deposit will not receive a written earnings statement on each payday. All employees may view or print their earnings statements online at http://www.txstate.edu/catsweb/index.htm. | ||||||||||||
| 03.05 | 03.05 Errors - Payments credited to bank accounts incorrectly via Direct Deposit will be reversed by Texas State as soon as the error is noted. A corrected entry will be processed as quickly as possible and credited via Direct Deposit. If correction by Direct Deposit is not feasible, a check for the correct amount will be issued by the University. Either the Payroll Office or the Accounts Payable Office will contact the employee(s) about erroneous payments (depending upon the type of payment). In the event that an employee has withdrawn funds which were erroneously credited to his/her account and the University is unable to execute a reversal of the erroneous entry, the University will contact the employee about repayment of the funds. If the employee remains employed by the University, the overpayment may be deducted from other amounts subsequently paid (for either payroll or non-payroll items). Or, the employee may repay the overpayment via check, certified check, etc., as determined by the Payroll Office or the Accounts Payable Office. | ||||||||||||
| 03.06 | Closing Bank Accounts - Employees are advised to contact the Payroll Office when contemplating closing their bank account(s), to assure that Direct Deposit payments are not in transit and to minimize the possibility of delayed payments. | ||||||||||||
| 03.07 | Employee Responsibility - Employees should verify the electronic deposits with their financial institutions before withdrawing funds. Employees are responsible for repayment to the University of all funds which are erroneously credited via Direct Deposit. Failure to repay funds will constitute theft of State assets and violators will be prosecuted. | ||||||||||||
| 03.08 | The University reserves the right to remove payments from Direct Deposit due to extenuating circumstances (such as financial obligations owed by the employee to the university). The employee will be contacted when such issues arise. | ||||||||||||
04. FORMS
| 04.01 | The Direct Deposit Authorization is available in hard-copy form from the Payroll Office, JCK 560 or may be downloaded from the Payroll Office website at http://www.txstate.edu/payroll |
05. MAJOR RESPONSIBILITIES ASSOCIATED WITH THIS PPS
| Major responsibilities for routine assignments associated with this PPS include the following:
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06. CERTIFICATION OF STATEMENT
This FSS/PPS has been approved by the following individuals in their official capacities, and represents FSS policy and procedure from the date of this document until superseded.
Ms. Pam Gulley, Interim Director, Accounting, Reviewer
Dr. Carolyn Conn, Associate Vice President, Financial Services/Treasurer, Reviewer
Mr. William A. Nance, Vice President for Finance and Support Services
| Approved: | ____________________________ Reviewer |
| Approved: | ____________________________ Reviewer |
| Approved: | ____________________________ Vice President for Finance and Support Services |