NYS Comptroller Seal


Bureau of State Payroll Services


  Date:  April 24, 2003 Bulletin No. 388

Subject Rejected Direct Deposit Transactions
Purpose To notify agencies of a change in processing and reporting for rejected direct deposit transactions.

To provide information about the use of sealed checks as replacement funds for rejected direct deposit transactions, in order to protect the personal privacy of State employees.
Affected Employees Employees whose payroll direct deposit transaction cannot be posted, due to an invalid or closed account.
Background Direct Deposit transactions for New York State employees are rejected if the employee's account information is invalid or if the account has been closed. OSC receives a daily report, identifying transactions that were rejected when funds cannot be posted to an employee's account. OSC produces a check to the employee for the funds that were not posted.

Previously, a check was produced manually and sent to the agency. Effective April 28, 2003 the checks will now be produced through the Central Accounting System and sent to the agency as a pressure sealed document in order to protect the personal privacy of the affected employees. 

The checks produced when an employee's payroll direct deposit transaction is rejected will now appear on the Accounting System report, VOU65 Payee List By Agency And Voucher. Since the original payroll appropriation charge for these transactions occurs on payday, these are not additional charges.
Agency Actions Notify your payroll and fiscal/accounting staff of this change. 

Remind employees to verify the account information on their direct deposit advices and submit a Direct Deposit Enrollment Form to their payroll office whenever there is a change to their direct deposit enrollment information.
OSC Actions OSC will continue to notify agencies of the rejected direct deposit transactions and arrange for the production of the employee's check.
Questions Questions regarding direct deposit rejected transactions may be directed to the Payroll Deductions mailbox.