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HRM-007: Direct Deposit of Payroll Payments

Date: 12/05/2007 Status: Final
Last Revised: 03/22/2023
Policy Type: University
Contact Office: Payroll Services
Oversight Executive: Vice President and Chief Financial Officer
Applies To:

Academic Division and the College at Wise.

Table of Contents:
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.

Compliance with Policy:
Failure to comply with the requirements of this policy may result in disciplinary action up to and including termination or expulsion in accordance with relevant University policies.

Questions about this policy should be directed to Payroll Services.

Major Category:
Human Resource Management
Next Scheduled Review:
Approved By, Date:
Executive Vice President and Chief Operating Officer, 12/05/2007
Revision History:
Confirmed 3/22/23; Added Compliance section 7/20/21; New link for Procedure 8/20/19; Updated procedures 4/19/18; Updated 3/21/17, 7/7/11.
Supersedes (previous policy):

Direct Deposit Policy.