Direct Deposit of Pay

University Policy: 
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Executive Summary: 

Direct deposit enrollment is mandatory for all individuals paid through UNC Charlotte’s payroll system. All UNC Charlotte employees are required to enroll in direct deposit by entering their direct deposit information into Banner Self-Service or by completing and submitting a Direct Deposit enrollment form. In accordance with federal requirements regarding direct deposit of payroll, UNC Charlotte employees may select the financial institution of their choice to accommodate the receipt of direct deposit payments. All employees are required to stay enrolled in the University’s direct deposit program throughout their employment with the University.

Policy Description: 

I.  Introduction

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 the University’s direct deposit program unless falling within an exception set forth in Part III of this Policy.  This Policy applies to all SHRA and EHRA 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 an SSN may encounter difficulty in opening an account with a U.S. financial institution.  Such individuals will be paid temporarily by paper check 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 to federal work-study students. However, direct deposit enrollment is still encouraged.

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 a direct deposit enrollment  form.

C. 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 a direct deposit  change form.

D. Paper checks processed per an exception to this policy will be mailed directly to employees by the University on payday; they are not available for pick-up. If the University is in a suspended operations (Condition 2) status or is closed (Condition 3), as defined in University Policy 701, Adverse Weather and Emergency Events, employees who are not signed up for direct deposit may not receive payroll checks until the University returns to a reduced operations (Condition 1) status or reopens.

V.  Effective Date

This regulation is effective for all payments made to employees on or after July 1, 2009. 

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 University Policy 801: Violation of University Policy).  

Revision History: 

Authority: Chancellor

Responsible Office: Business Affairs

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