HRM-007: Direct Deposit of Payroll Payments

Date: 12/05/2007 Status: Final
Last Revised: 04/19/2018
Policy Type: University
Contact Office: Payroll Services
Oversight Executive: Vice President for Finance
Applies To: Academic Division and the College at Wise.
Table of Contents:

Policy Statement
Procedures

Reason for Policy:

Direct deposit benefits both the employee and the University. Benefits to the employee include:

  • No lost or stolen checks;
  • No unclaimed or un-cashed checks;
  • Elimination of long payroll and banking lines and wasted time cashing checks; and
  • Assurance that payments will be automatically deposited while on vacation, sick leave or out of town.

Benefits to the University include:

  • Reduced processing time and requirements for check reconciliation;
  • Elimination of forged, stolen or lost checks;
  • Reduced operating costs;
  • Improved productivity; and
  • Enhanced cash management by increasing predictability of cash flows.
Definition of Terms in Statement:
  • Direct Deposit:

    A system for electronically placing an employee's earnings in a checking or savings account at the Federal Reserve affiliated bank or financial institution of the employee's choice; also known as Electronic Funds Transfer (EFT).

Policy Statement:

All University employees, regardless of hire date, salaried or wage status, or pay frequency, shall participate in the University’s direct deposit system for payroll disbursement. This includes student employees, UVA temps, and part time employees.

Procedures:

Employee Self-Service Banking Entry for Direct Deposit – a step-by-step guide on how to set-up or modify existing direct deposit instructions.

Major Category: Human Resource Management
Next Scheduled Review: 04/19/2021
Approved by, Date: Executive Vice President and Chief Operating Officer, 12/05/2007
Revision History: Updated procedures 4/19/18; Updated 3/21/17, 7/7/11.
Supersedes (previous policy):
Direct Deposit Policy