Payroll

Policy

FIACCT 11-06_00 Payroll – Direct Deposit

Effective: May 1, 1989
Revised: March 10, 2017
Reviewed: March 10, 2017

Purpose

Direct deposits are the primary method of employee payment for all state employees. This document outlines the policies and procedures for state employees who want their paychecks deposited directly to one or more bank(s), credit union(s), prepaid debit card(s), or investment firm(s), herein called financial institution(s).

Policy

A. All employees of the State of Utah are eligible to have their pay deposited directly to their financial institution(s) via electronic funds transfers.

B. The State can transmit the funds to most financial institutions (i.e., banks, credit unions, prepaid debit cards, or investment firms).

C. Employees may add, change, and delete their direct deposit account(s) using the Employee Self Service (ESS) internet portal provided the employee:
• Has an e-mail address
• Has a LAN password and has been set up in the UMD (Utah Master Directory)
• Has been set up by their department with access to ESS

D. Employees who do not have access to Employee Self Service (ESS) and want to participate in direct deposit must complete the Employee Authorization Agreement for Payroll Direct Deposits, Form FI 21, and attach the voided check or financial institution document(s) showing the routing and account numbers.

E. The use of a ‘Main’ bank account is required to participate in direct deposit therefore employees cannot delete the ‘Main’ bank account. The creation of a new ‘Main’ bank account automatically deactivates the current ‘Main’ bank account. The ‘Main’ bank account receives the balance of an employee’s net pay after all the direct deposits to ‘Other’ bank accounts have been made. (Therefore an amount to deposit cannot be specified for the ‘Main’ bank account.)

F. Once the ‘Main’ bank account has been established, employees may specify amounts to be deposited to up to three (3) ‘Other’ bank accounts. If ‘Other’ bank accounts have been set up, the deposits are made to the ‘Other’ bank accounts first, in effective date order starting with the oldest account with the remainder being deposited into the ‘Main’ bank account last. If your pay is less than the amount(s) specified, one or more of your ‘Other’ deposits will be short. If the amounts you specify for your ‘Other’ account(s) equal or exceed your net pay, no amount is deposited to your ‘MAIN’ account.

Deposits will be made to the employees’ accounts in the following order: 1st ‘Other’ bank account;
2nd ‘Other’ bank account; 3rd ‘Other’ bank account; last ‘Main’ bank account.

G. If the amounts specified for the ‘Other’ bank accounts equal or exceed the net pay, one or more deposits will be less than the requested deposit.

H. The DAS Division of Finance Payroll Section processes all FI 21 ‘Employee Authorization Agreement for Payroll Direct Deposits’ forms. Once the Division of Finance, Payroll Section receives the completed Employee Authorization Agreement for Payroll Direct Deposits, Form FI 21, employees should allow the following processing times:
• Two weeks for direct deposits made to new or changed accounts to become effective;
• Two weeks for cancellations or dollar amount changes to become effective.

I. The State recommends that the employee NOT close the current financial institution account until the
direct deposit has been stopped or has been changed to the new account. If an employee has closed the account and the State transfers funds to that account, the employee must wait until the financial institution refunds the money to the DAS Division of Finance. Once a credit for the money has been received, the State Payroll Section will issue a warrant (a check) to the employee.

J. Funds directly deposited are usually available for withdrawal on payday. However, delays sometimes
occur. If your deposit is delayed, contact your financial institution for an explanation. If your financial institution cannot help you, contact the DAS Division of Finance State Payroll Section. The State of Utah is not responsible for bad check charges or for other costs incurred by the employee as a result of checks or withdrawals written on delayed direct deposits.

K. New Account Disclaimer for employees using Employee Self Service (ESS) to maintain their bank
account(s):
• It is extremely important that the employee enters the correct bank routing and account numbers. The employee is responsible for the accuracy of the information.
• We strongly recommend that the employee call their financial institution to verify the routing and account numbers. (A bank or credit union may use a different number than what appears on a check or deposit slip.)
• Incorrect routing or account numbers will delay payment for that deposit by 2-3 business days while we recover the payment. In rare cases, the deposit may not be recoverable.
• Employees are encouraged to verify the deposit was received within 24 hours of the first payday for which the account was effective. If the deposit was not received, the employee should contact the DAS Division of Finance State Payroll Section immediately at (801) 538-3056.
• The bank routing number must already exist in the payroll system for the employee to be able to set the bank up in ESS. If the edits do not allow entry of the routing number for the bank, the employee will need to contact the DAS Division of Finance State Payroll Section at (801) 538-3056 to add the bank to the payroll system.

Procedures

Responsibility

Action

I. General Procedures

Departmental Payroll/
Personnel Staff

Ensure all employees that have a state e-mail and LAN account access are given general access to Employee Self Service (ESS).

Employee

Log onto the Employee Self Service (ESS) internet portal to add, change and
delete account(s) to which your net pay is directly deposited.

OR

If you do not have access to ESS, obtain the Employee Authorization
Agreement for Payroll Direct Deposits, Form FI 21, available electronically from finance.utah.gov.

1. Complete Form FI 21:
• Sign and date the form.
• Attach the voided check or financial institution document(s) showing the routing and account numbers for the accounts to which the payroll warrant is to be directly deposited.

2. Send the completed Form FI 21 to the DAS Division of Finance State Payroll Section by email at [email protected] or by fax 801-538-3244.

DAS Division of
Finance State Payroll
Section

Process the direct deposit request.

II. Establish a New Bank Account

Employee

  1. Contact the financial institution to determine if it can receive electronically transmitted deposits. If the financial institution is unable to receive funds electronically, the State cannot process a direct deposit for that account.
  2. Log onto ESS and access the Direct Deposit link from the Payroll role and Personal Information work area. Enter the new ‘Main’ or ‘Other’ bank account information;

    OR

    If you do not have access to ESS, obtain the Employee Authorization Agreement for Payroll Direct Deposits, Form FI 21, available electronically from finance.utah.gov.
  3. Select the type of direct deposit account to be opened:
    • ‘Main’ bank account (required)
    • ‘Other’ bank account (Up to three (3) ‘Other’ banks may be set up)
  4. Complete Form FI 21 as follows:
    • Select the appropriate ‘New’ checking or savings account radial
    button
    • Enter the ‘Amount’ (for ‘Other’ bank account(s) only)
    • Enter the financial institution name and account number
    • Verify the routing number shown on the voided check or other documents for each financial institution
    • Read the ‘Employee Authorization Agreement for Payroll Direct
    Deposits’ section
    • Sign and date the form
    • Attach the voided check or financial institution document(s) showing the routing and account numbers
  5. Send the completed FI 21 form to the Division of Finance State Payroll Section by email at [email protected] or by fax 801-538-3244.

DAS Division of
Finance State Payroll
Section

Process the direct deposit request.

III. Cancel ‘Main’ Bank Account

Employee

  1. To cancel the ‘Main’ bank account, obtain the Employee Authorization Agreement for Payroll Direct Deposits, Form FI 21, available electronically from finance.utah.gov. (See NOTE below)
    The State requires direct deposit to the ‘Main’ bank account to participate in direct deposit. If the employee cancels direct deposit to the ‘Main’ bank account, the DAS Division of Finance State Payroll Section will also
    CANCEL direct deposit to ALL ‘Other’ bank account(s) and the employee will be issued a payroll check.
  2. Complete Form FI 21:
    • Select the ‘Cancel ‘Main’ and ALL ‘Other’ Accounts’ radial
    button
    • Enter the financial institution name and account number for the ‘Main’ account being canceled on the line designated ‘Current’
    • Sign and date the form
  3. Send the completed FI 21 form to the DAS Division of Finance State Payroll Section by email at [email protected] or by fax 801-538-3244.

    NOTE: DO NOT close the account until you can verify that the State has stopped the direct deposit. If the State transfers funds to an account that the employee has closed, the employee must wait until the financial institution refunds the money to the DAS Division of Finance. Once the State receives the credit for the money, State Payroll Section issues a payroll warrant to the employee.

DAS Division of Finance State Payroll Section

Process the direct deposit cancellation request.

IV. Cancel ‘Other’ Bank Account

Employee

  1. To cancel an ‘Other’ bank account in ESS you will need to access the Direct Deposit link from the Payroll role and Personal Information work area. Select the account you want to cancel, and click the ‘Delete’ button. (See NOTE below);

    OR

    If you do not have access to ESS, obtain the Employee Authorization Agreement for Payroll Direct Deposits, Form FI 21, available
    electronically from finance.utah.gov.
  2. Decide which ‘Other’ bank account deposit to stop:
    • 1st ‘Other’ bank account
    • 2nd ‘Other’ bank account
    • 3rd ‘Other’ bank account
  3. Complete Form FI 21:
    • Select the appropriate ‘Cancel Account’ radial button for the ‘Other’ account(s) you want to cancel
    • Enter the financial institution name and account number being canceled on the line designated ‘Current’
    • Sign and date the form
  4. Send the completed FI 21 form to the DAS Division of Finance State Payroll Section by email at [email protected] or by fax 801-538-3244.

    NOTE: DO NOT close the account until you can verify that the State has stopped the direct deposit. If the State transfers funds to an account that the employee has closed, the employee must wait until the financial institution refunds the money to the State Division of Finance. Once the State receives the credit for the money, State Payroll issues a payroll warrant to the employee.

DAS Division of Finance State Payroll Section

Process the direct deposit cancellation request.

V. Change Account Number with the Same Financial Institution

Employee

  1. To change an account number with the same financial institution in ESS access the Direct Deposit link from the Payroll role and Personal Information work area.

    To change the ‘Main’ bank account you will need to click the ‘New’ button and enter the new bank routing and account information. To change an ‘Other’ bank account, you will need to click the ‘Delete’ button, then set up a new ‘Other’ bank account (See NOTE below);

    OR

    If you do not have access to ESS, obtain the Employee Authorization Agreement for Payroll Direct Deposits, Form FI 21, available electronically from finance.utah.gov.
  2. Decide which financial institution account number you want to change: ‘Main’ bank account (See NOTE below)
    • 1st ‘Other’ bank account
    • 2nd ‘Other’ bank account
    • 3rd ‘Other’ bank account
  3. Complete Form FI 21 as follows:
    • Select the appropriate ‘New’ checking or savings account radial
    button
    • Enter the ‘New’ financial institution name and account number
    • Enter the ‘Current’ financial institution name and account number
    • Enter the ‘Amount’ (for ‘Other’ bank account(s) only)
    • Verify the routing number shown on the voided check or other document for each financial institution
    • Sign and date the form
    • Attach a voided check or financial institution document(s) showing the routing and account numbers for the accounts to which the money is to be deposited
  4. Send the completed FI 21 form to the DAS Division of Finance State Payroll Section by email at [email protected] or by fax 801-538-3244.
    • Deposits to the ‘Current’ account stop when the ‘New’ account is activated

    NOTE: DO NOT close the current account until you can verify that the new direct deposit account is active. If the State transfers funds to an account that the employee has closed, the employee must wait until the financial institution refunds the money to the State Division of Finance. Once the State receives the credit for the money the Division of Finance issues a warrant to the employee.

DAS Division of Finance State Payroll Section

Process the direct deposit change.

VI. Change Direct Deposit $ Amount (for an EXISTING account)

Employee

  1. To change a direct deposit $ amount for an existing account in ESS, access the Direct Deposit link from the Payroll role and Personal Information work area. Select the ‘Other’ bank account for which you want to change the amount then click the ‘Change’ button and enter the new amount;

    OR

    If you do not have access to ESS, obtain the Employee Authorization Agreement for Payroll Direct Deposits, form FI 21, available electronically from finance.utah.gov.
  2. Select the ‘Other’ direct deposit account(s) for which you want to change the dollar amount:
    • 1st ‘Other’ bank account
    • 2nd ‘Other’ bank account
    • 3rd ‘Other’ bank account
    NOTE: The amount designated for the ‘Main’ bank is always ‘Net Pay’.
  3. Complete Form FI 21 as follows:
    • Select the appropriate ‘Change $ Amount’ radial button
    • Enter the new dollar amount
    • Enter the financial institution name and account number
    • Sign and date the form
  4. Send the completed FI 21 form to the DAS Division of Finance State Payroll Section by email at [email protected] or by fax 801-538-3244.

DAS Division of Finance State Payroll Section

Process the direct deposit dollar amount change.

VII. Change to a New Financial Institution

Employee

  1. Contact the new financial institution to determine if it can receive electronically transmitted deposits. If the financial institution is unable to receive funds electronically, the State cannot process a direct deposit for that account.
  2. To change to a new financial institution for the ‘Main’ bank account in ESS, access the Direct Deposit link from the Payroll role and Personal Information work area. Select ‘New’ and enter the new account information, this will end the old financial institution. To change an ‘Other’ bank account to a new financial institution, select the other bank account you want to change and click the ‘Delete’ button, then set up a New ‘Other’ bank account (See NOTE below);

    OR

    If you do not have access to ESS, obtain the Employee Authorization Agreement for Payroll Direct Deposits, form FI 21, available electronically from finance.utah.gov.
  3. Select the type of direct deposit to change to a ‘New’ financial institution:
    • ‘Main’ bank account
    • 1st ‘Other’ bank account
    • 2nd ‘Other’ bank account
    • 3rd ‘Other’ bank account
  4. Complete Form FI 21 as follows:
    • Select the appropriate ‘New’ checking or savings account radial
    button
    • Enter the ‘New’ financial institution name and account number
    • Enter the ‘Current’ financial institution name and account number
    • Enter the ‘Amount’ (for ‘Other’ bank account(s) only)
    • Verify the routing number shown on the voided check or other
    documents for each financial institution
    • Sign and date the form
    • Attach to the form the voided check or financial institution
    document(s) showing the routing and account numbers
  5. Send the completed FI 21 form to the DAS Division of Finance State Payroll Section by email at [email protected] or by fax 801-538-3244.

    NOTE: DO NOT close the current account until you can verify that the new direct deposit account is active. If the State transfers funds to an account that the employee has closed, the employee must wait until the financial institution refunds the money to the DAS Division of Finance. Once the State receives the credit for the money, the DAS Division of Finance State Payroll Section issues a payroll warrant (check) to the employee.

DAS Division of Finance State Payroll Section

Process the direct deposit change.

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