Direct Deposit
Direct Deposit is an electronic paying method whereby the employees receive their salary directly into their bank account. A special agency is involved in handling the payroll system. Basically, the pay of the employee is directly transferred into his concerned bank account through electronic fund transfer facility. This facility of direct deposit is safe, fast and convenient for employees. The employee benefit tremendously by this direct deposit facility and at the same time the State benefits in terms of cost savings.
With the help of direct deposit facility, the employee can enjoy the benefit of receiving his pay directly in to his account and that too in timely manner. Gone are the days when one had to wait in large queues in order to deposit his pay check. Also, through direct deposit facility, the chances of loosing your pay check or making a stop payment, is now all things of the past. You don’t have to face such issues since direct deposit facility takes care of depositing your pay check directly into your applied bank account. Direct deposit facility is very common in today’s times and everyone is definitely benefiting from this service. Also, through direct deposit facility, the funds are made available for salary withdrawal, through the ATM. If the employee has applied fro a direct deposit facility, in the first month, he will receive his salary through check. This is done in order to across check his given bank information. Hence, a so called, “test transaction” is initiated before a direct deposit transaction can be initiated.
If you want to make any changes with regard to your bank account, you must fill a new authorized form which is available from the HRD or payroll office. Please note that if you make any necessary changes with regard to your bank account, then in that case, you will have to go through a new test transaction for verification purpose. The employee can request an exemption from Direct Deposit if :
1. The employee is unable to acquire a bank account due to a low credit rating or a history of issuing bounced checks.
2. The employee may feel that there are lots of hardships involved in enrolling in direct deposit facility.
If the employee is unable to open a bank account, just because he has low credit rating, then in that case, he has to obtain a letter from such a bank stating that he has been denied an account. On the other hand, if the reason for exemption is due to a specific extreme hardship, he must then explain in writing to the State Controller, as to why he feels that he should be granted a personal exemption. Having said all this, one should realize that it is highly recommended for every employee to open a direct deposit account.
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