Human Resources

Electronic Direct Deposit Policy

1. Introduction
   Electronic Direct Deposit is an efficient, secure and economical method for delivering payments to employees, student workers and graduate assistants. Direct deposit assures that an individual’s payment is deposited timely even if they are not at work due to illness, vacation, or other approved leave. Electronic deposit of funds can be made to any financial institution in the United States. This campus policy is in accordance with provisions set forth by the SIU Board of Trustees on May 13, 2010.
2. Policy
   This Policy applies to all SIUE student workers, graduate assistants, and employees, including but not limited to; civil service, faculty, staff, administrative professionals, part-time and extra-help.
   Effective July 1, 2011, all newly hired and rehired employees, student workers and graduate assistants, as a condition of employment, are required to participate in the University’s direct deposit program, unless subject to an exception set forth in Part III of this Policy. All existing employees are strongly encouraged to participate in the direct deposit program.
   Electronic direct deposit will be the payment method for all employee, student worker, and graduate assistant payrolls.  Travel and business expense reimbursements will be deposited to the same account designated for payroll direct deposit. If payroll is deposited into more than one bank account, the travel and business expense reimbursement will be deposited into the primary (residual/ main) bank account.
3. Exception
   There are certain, limited circumstances under which payment by paper check rather than direct deposit is permitted, including:
   1. Foreign Nationals without a Valid Social Security Number (SSN)
      Because U.S. financial institutions generally require a valid SSN for mandatory reporting purposes, foreign nationals who experience a waiting period before being issued a SSN may encounter difficulty opening an account with a U.S. financial institution or obtaining a debit card. Such individuals will be paid temporarily by paper checks, but are required to enroll in the direct deposit program immediately upon issuance of their SSN.
   2. Payment of Federal Work-Study Wages
      Federal Work-Study (FWS) regulations allow student workers and graduate assistants awarded FWS wages to opt out of electronic direct deposit.
   3. First and Last Payroll Payments
      Due to employee, student workers, and graduate assistant’s hire/separation date and payroll processing schedules, the first and/or last payroll payments may be processed as a paper check.
   4. Other Exceptions
      Other exceptions will be considered only for compelling reasons. The individual must complete a “Request for Waiver of Direct Deposit” form.  The Payroll Manager, in consultation with the HR Director, will review all exceptions.
4. Procedures
   1. Electronic direct deposit payments can be deposited to a checking, debit or savings account of the individual’s choice, at any U.S. financial institution. This account will also be used as the default deposit method for travel and business expense reimbursements.
   2. As an alternative to traditional banking services, payments can be deposited to a University designated debit card (when and if this method becomes available). If this method of payment is selected for payroll, it will serve as the default deposit method for travel and business expense reimbursements.
   3. Individuals are solely responsible for maintaining updated banking information and must prepare an updated SIUE Direct Deposit Authorization form when/if any of their banking information changes. Failure to submit updated bank information on a timely basis may result in a delay in payment.
   4. When/if paper checks are created, they will be mailed to the individual’s mailing address active on the date the check is payable. Individuals are solely responsible for maintaining updated mailing addresses through CougarNet (Banner self service). Failure to maintain an updated mailing address may result in a delay in payment.
5. Effective Date
   This policy is effective for all payments made to newly hired employees, student workers and graduate assistants after July 1, 2011.