|Date: April 28, 2004||Bulletin No. 480|
|Subject||Direct Deposit Enrollments|
|Purpose||To encourage agencies to promote direct deposit for their employees and to outline OSC guidelines for the Direct Deposit program.|
|Affected Employees||All Employees|
|OSC Direction||Direct deposit is the preferred method for paying State employees and benefits both New York State and the employees. OSC encourages agencies to promote full direct deposit for employees who currently receive a paycheck or receive a paycheck and a direct deposit advice. Direct deposit is cost effective.|
|Background||Regulations governing the Direct Deposit program are provided in Chapter IV, Part 102 of the Official Compilation of Codes, Rules and Regulations of the State of New York.|
|Minimizing the Risk of Unrecoverable Overpayments||
All employees should be offered the opportunity to participate in direct
deposit unless they have demonstrated specific behavior that puts the State
at risk of issuing unrecoverable overpayments.
To minimize the risk of unrecoverable overpayments, OSC offers the following guidelines for use by agencies:
Enrollments/Changes to Direct Deposit
Refer to Payroll Bulletin No.(s) 390 and 406 for instructions on processing on-line data entry of direct deposit. The direct deposit enrollment form AC 2772 (Rev. 3/03) is available on the OSC website at http://www.osc.state.ny.us/payroll/files/ac2772.pdf.
Instructions for enrollments and changing direct deposit enrollments are printed on page two of the direct deposit enrollment form. The direct deposit form is a legal document and cannot be altered by the agency, employee or financial institution.
If an employee has more than one account, the accounts should be entered on the form and in the Payroll System in priority order. Funds will be deposited to the accounts in the order listed.
The form provides information on the appropriate action to take if the employee needs to change direct deposit account information. Employees should not close current accounts until they receive confirmation of the requested action in their paychecks or on their direct deposit advice.
Promote Direct Deposit
Agencies should review their current direct deposit enrollment and cancellation policies and practices to ensure there is the appropriate balance between promoting direct deposit and protecting New York State assets. The existence of internal controls should not result in unnecessarily discouraging or restricting participation in direct deposit. OSC discourages the following:
Promotion is the key to a successful Direct Deposit program. When direct
deposit is actively promoted, employee participation increases. All agencies
are encouraged to promote direct deposit. The following actions may enhance
direct deposit participation:
Movement Between Payrolls
When OSC receives a rejected direct deposit transaction, OSC produces a check for the employee. This process may take one week or more after the original check date. If the direct deposit transaction is rejected due to agency error, the agency should refer to Accounting Bulletin No. A-472 for guidelines on salary advances from Petty Cash advance accounts.
The employee's financial institution rejects the direct deposit transaction when:
Procedures for Inactive Employees
Questions related to promoting direct deposit may be directed to the Payroll Services mailbox.
Question regarding transaction processing may be directed to the Payroll Deductions mailbox.