SUNY University-Wide Human Resources Manual
Orientation - Direct Deposit

last updated: Friday, October 28, 2005

All SUNY employees, except for employees paid on a fee or extra service basis, paid on either the regular state payroll, the graduate/teaching assistant payroll, the student assistant payroll or the college work-study payroll are eligible to, and strongly encouraged to, participate in the State's direct deposit program. Participants in the direct deposit program have their pay electronically deposited directly into their bank accounts.

Employees with low leave balances or poor attendance records, or who develop them, may be excluded from, or declared ineligible, for participation.

Direct Deposit is good for both SUNY campuses and their employees.

It reduces the number of special arrangements that campuses have to make to accommodate employees and avoids problems associated with the untimely distribution of paychecks.

Participating employees eliminate the need to go to the bank and the inconvenience of making special arrangements to receive their checks while on vacation, sabbaticals, sick leave, or during holiday periods when they are not required to be on-campus.

Important Conditions

Employees on direct deposit receive a different type of pay stub but it includes the a full explanation of deductions and deposits including year-to-date information.

Following are some features of the direct deposit program:

• Direct Deposit will begin in the pay period immediately following the submission of a completed enrollment form;
• Direct Deposit will not be automatically cancelled when an employee is removed from the payroll for separation from service or leave without pay. The employee's direct deposit will continue for their last check and any subsequent payments made during the same calendar year; and
• Direct Deposit information will be transferred automatically when an employee moves to a new State agency.

Authorization for Recovery of Funds Deposited in Error
By signing the Direct Deposit of Salary Enrollment Form, the employee and each joint tenant, if any, each 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. This means of recovery shall not prevent the State from utilizing any other lawful means to retrieve salary payments to which the employee is not entitled.

Cancellation
The agreement represented by the completion of the Direct Deposit of Salary Enrollment Form remains in effect until cancelled by the employee or until the campus declares the employee ineligible for continued participation because of an erratic attendance pattern or low accrual balances. To cancel, employees must complete a new enrollment form with a "CANCEL" transaction. The campus should notify an employee at least one pay period in advance of withdrawing the employee's privilege to participate.
The agreement represented by the completion of the Direct Deposit of Salary Enrollment Form may be cancelled by the financial institution by providing the employee and the campus with a written notice 30 days in advance of the cancellation date. The financial institution cannot cancel the authorization without notification to both the employee and the campus.
A cancellation does not become effective until the State Comptroller's Office is notified.

Changing Receiving Financial Institutions
An employee may change financial institutions by completing a new enrollment form with a "CHANGE" transaction at the newly selected financial institution. The new enrollment will cancel the enrollment at the previous financial institution.
A change in financial institution may take two payroll periods for processing of the first Direct Deposit to the new account. The employee should maintain accounts at both financial institutions until the transaction is complete, i.e., until the new financial institution receives the employee's Direct Deposit payment. If the account at the first financial institution is not maintained the employee may experience a delay in payment until the new authorization takes effect.
Employees who wish to participate in the direct deposit program should contact their campus payroll office for answers to any remaining questions or to obtain a direct deposit form. A direct deposit form is also available under forms at the end of this section.

Reference(s):

Direct Deposit and You - Frequently Asked Questions (OSC) at:
http://www.osc.state.ny.us/payroll/files/ddfaq.htm

Form(s):

Direct Deposit Form (AC2772) (PDF non fill-in) or (PDF fill-in)
http://www.osc.state.ny.us/agencies/ac2772.pdf