Mandatory Participation in the University's Direct Deposit Program
REG 05.45.1
Authority: Vice Chancellor for Finance and Business
History: First Issued: October 1, 1991. Last Revised: May 23, 2006. Additional History Information.
Additional References: Direct Deposit Enrollment/Change Form
Contact Info: Director, Payroll (919-515-4350)
1. INTRODUCTION
Direct deposit of payments to employees is considerably more efficient and cost-effective than the administration of paper paychecks. All permanent employees hired since October 1, 1991, have participated in the University's direct deposit program for payroll and reimbursement of business expenses. Direct deposit has been available to other individuals (notably student workers and temporary employees) on a voluntary basis since 2005.
Effective October 1, 2006, as a condition of new or continued employment, all individuals paid through NC State University's payroll system must participate in the University's Direct Deposit program.
2. COVERED INDIVIDUALS
This provision applies to all SPA and EPA employees, including those hired prior to October 1, 1991; as well as post doctoral associates and fellows; graduate students and graduate scholarship/fellowship recipients; undergraduate student workers; and temporary employees.
3. EXCEPTIONS
3.1 Because U.S. banking institutions generally require a valid Social Security number for mandatory federal reporting purposes, foreign nationals who experience a waiting period before being issued a Social Security number (SSN) may encounter difficulty in opening a U.S. bank account. Such individuals will be paid temporarily by paper paychecks but are required to enroll in Direct Deposit as soon as their SSNs are issued.
3.2 A one-time payment to an individual, such as an honorarium to a visiting foreign national, may be exempted if the Director of Payroll deems direct deposit enrollment impracticable.
3.3 Other exceptions will be considered only for compelling reasons by the Vice Chancellor for Finance & Business, upon recommendation of the Director of Payroll.
4. PROCEDURES
4.1. Individuals must enroll for Direct Deposit at the time of hire.
4.1.1. Hiring departments will provide Direct Deposit enrollment materials (hard copy enrollment forms and/or guidelines on how to enroll electronically through the HR System) in new-hire packets.
4.1.2. The Direct Deposit Enrollment/Change Form is available online through the HR Forms section of the HR website, or through the authorized HR/payroll coordinator for the individual's department.
4.1.3. Individuals may enroll or change their enrollments electronically, through Employee Self-Service, which is accessed through the University's secure Administrative Portal .
4.2 Individuals who do not have, or do not designate, a current banking relationship with a financial institution will be provided with a direct-deposit debit account through the University's selected financial institution.
4.3 The same bank account designated by the individual for direct deposit of pay also serves as the individual's default account for reimbursement of university-related expenses, such as travel. Individuals who wish to have their business-related reimbursements directed to an account other than the one to which their pay is deposited should complete an Expense Reimbursement Direct Deposit Bank Account Information/Change Form through the Accounting Office.
5. EFFECTIVE DATE
This regulation is effective for all payments made to employees on or after October 1, 2006.
6. RESOURCES
Questions concerning the Direct Deposit program should be directed to the Payroll Department at 515-4350 for payroll-related matters, or to Accounting at 515-2139 for business-expense reimbursement matters.
