Draft of 40.059 : Direct Deposit of Employee Pay

1. Purpose

   Ohio university is committed to providing a secure and efficient payment method for faculty, staff, students, and the university. This policy outlines the university’s guidelines for direct deposit, ensuring individuals receive and access their earnings promptly while eliminating the risk of lost or misplaced checks.

2. Scope of policy

   This policy applies to all employees receiving payments through the university payroll system. All employees are required to receive their pay via direct deposit into a United States (US) bank or credit union account, irrespective of their employment start date. Employees must also maintain a U.S. residential address for applicable payroll and tax administration.

3. Definitions 

   1. Direct deposit: the electronic transfer of an employee's net pay into a designated US bank or credit union account.
   2. Net pay: the amount of an employee's earnings after all deductions, such as taxes and retirement contributions, have been subtracted from gross pay.
   3. Bank information: the details of an employee's US bank or credit union account, including the account number and routing number, required for setting up a direct deposit.
   4. Payslip: a document provided to employees for each pay period that outlines gross pay, deductions, and net pay.
   5. Rejected deposit: a situation where the direct deposit is not accepted by the financial institution.
   6. University payroll services: the university office responsible for processing direct deposits.
   7. Flexwork tracker: the university's system of record for documenting, reviewing, approving, and maintaining employee flexible work arrangements, including flexplace and flexible schedule agreements.
   8. Address: the employee's residential address maintained in university records used for payroll, taxation, and official university communications purposes. A post office box may not be used as a residential address for tax purposes.

4. Policy content

   1. Mandatory enrollment

      All employees are required to have one hundred per cent of their net pay directly deposited into a bank account. Employees are responsible for providing accurate bank information. Direct deposit for newly hired employees must be established within thirty days of their start date.

   2. Changing financial institutions

      To change an existing direct deposit to a different financial institution, employees must do so online through My Personal Information (MPI) or submitting a Direct Deposit Authorization Form to university human resources at least ten days prior to the next applicable payday.

   3. Rejected deposits

      If a deposit is rejected, the participating financial institution will notify university human resources. The employee will not lose their pay; however, the rejection will result in a delay in receiving pay. The employee will be issued a paper check for the deposit. 

   4. Activation period

      Once authorization is received by university human resources, it may take one pay cycle to become active. During this time, employees will be paid by paper check mailed to a valid mailing address on file.

   5. Employee responsibilities

      Employees are responsible for reviewing their payslip for accuracy and promptly notifying university human resources if there has been an error such as overpayment of wages, incorrect taxation, etc. 

Forms, References, and History

1. Forms

   The following forms are relevant to this policy:

   1. Direct Deposit | Ohio University

2. References

   The following items are references to this policy:

   1. Direct Deposit | Ohio University

3. History

   Draft versions of this policy that were circulated for review, their cover memos, their forms, and Reviewers' comments on them are available on the password-protected Review site.

   There are no prior versions of this policy.