Initially approved May 8, 2009
POLICY STATEMENT #14
DIRECT DEPOSIT OF PAY
UNC
Charlotte has offered direct deposit of salary and
wages, approved employee travel payments, and business
expense reimbursements since March 2006. Direct
deposit is an efficient, secure and economical method
for delivering payments to employees. In keeping
with a consistent, cost-effective fiscal policy,
UNC Charlotte has adopted the following policy mandating
direct deposit.
II.
Policy
Effective
July 1, 2009, as a condition of new or continued
employment, all individuals paid through UNC Charlotte’s
payroll system must participate in University’s
direct deposit program unless falling within an
exception set forth in Part III of this Policy.
This Policy applies to all SPA and EPA employees,
as well as post-doctoral associates and fellows,
graduate students and graduate scholarship/fellowship
recipients, undergraduate student workers, part-time
employees and temporary employees. Direct deposit
will be the payment mechanism for salary and wages,
approved employee travel payments, and business
expense reimbursements.
III.
Exceptions
There
are certain limited circumstances under which payment
by paper check rather than direct deposit is necessary
or justified, including:
A.
Foreign Nationals without a Valid Social Security
Number (SSN)
Because
U.S. financial institutions generally require a valid
SSN for mandatory federal reporting purposes, foreign
nationals who experience a waiting period before being
issued a SSN may encounter difficulty in opening an
account with a U.S. financial institution. Such individuals
will be paid temporarily by paper checks but are required
to enroll in direct deposit immediately upon issuance
of their SSN.
B.
Short-Term Payments
Short-term
or one-time payments, such as an honorarium to a visiting
foreign national, may be exempted by Payroll or Accounts
Payable if direct deposit enrollment is not practical.
C. Payment
of Federal Work-Study Wages
Federal
Work-Study regulations prohibit employers from mandating
direct deposit. Work-Study students will be paid
by paper check unless they actively authorize direct
deposit of their pay.
D. First
and Last Payroll Payments
Due
to hire date and Payroll processing schedules, the
first and last payroll payments to an employee may
be processed as a paper check.
E. Other
Exceptions
Other
exceptions will be considered only for compelling
reasons, such as extreme hardship. These exceptions
will be granted solely at the discretion of the Controller
based on evidence provided by the employee.
IV.
Procedures
A. Human
Resources will provide direct deposit enrollment materials
in new-hire packets.
B. Employees
must enroll in direct deposit within 30 days of the
time of hire or rehire by entering their direct deposit
information into Banner Self-Service or by completing
and submitting the Direct Deposit Enrollment and Change
Form to Payroll.
C.
All individuals employed prior to July 1, 2009 who
are receiving their pay by paper check shall be required
to enroll in direct deposit by entering their direct
deposit information into Banner Self-Service or by
completing and submitting the Direct Deposit Enrollment
and Change Form to Payroll prior to June 1, 2009.
D.
Direct deposit payments can be deposited to a
checking or savings account at any U.S. financial
institution. The same account designated by the individual
for direct deposit of their payroll check will serve
as the individual’s default account for approved employee
travel payments and business expense reimbursements.
Individuals who wish to have their business-related
payments and reimbursements directed to an account
other than the one to which their pay is deposited
may do so through Banner Self-Service or submission
of the Direct Deposit Enrollment and Change Form.
V.
Effective Date
This
regulation is effective for all payments made to employees
on or after July 1, 2009. All payments by paper check
following that date will be mailed directly to employees
by the University on payday, and will no longer be available
for pick-up.
VI.
Compliance
Failure
to comply with this Policy may subject employees to
disciplinary action under appropriate University disciplinary
procedures, up to and including termination (see
Policy Statement #25: Violation of University
Policy).
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