|Date: July 24, 2003||Bulletin No. 422|
|Subject||Direct Deposit Stop Payments and Reversals|
|Purpose||To notify agencies of the procedures and a new form (AC 3197) to be used when requesting a stop payment or reversal of a direct deposit transaction.|
|Affected Employees||Direct Deposit enrollees who would be overpaid if a direct deposit transaction is not stopped or reversed.|
the State payroll is processed one week before payday. This allows sufficient
time for the checks and direct deposit advices to be printed, delivered
to agencies and distributed to employees.
When an employee is enrolled in the Direct Deposit program, the funds are automatically deposited to the employee's checking or savings account. Agencies cannot use form AC-230 (Check Returned for refund or Exchange) to process a check exchange for employees in direct deposit until the funds are recovered by OSC from the employee's financial institution.
After paychecks and direct deposit advices are produced, agencies must use the stop/reversal process, rather than online transactions, to stop or reverse the direct deposit transaction and to prevent an overpayment to an employee.
By enrolling in the direct deposit program, the employee and each joint tenant, if any, consent to allow the State, through the financial institution, to debit the account in order to recover any salary to which the employee was not entitled which was deposited to the account in error or by mistake. Refer to the instructions on the back of the direct deposit enrollment form http://www.osc.state.ny.us/agencies/2003_2004/ac2772.pdf for further information.
|Questions||Questions concerning direct deposit transaction stops and reversals may be directed to the Payroll Deductions mailbox. Contact your payroll auditor to discuss overpayment recovery.|
Direct Deposit Enrollment Form
Fax Request for Direct Deposit Stop/Reversal (AC 3197)