Financial Services Policy 9.1 – Distribution of Payroll Checks/Direct Deposit Notifications

Direct deposit notifications are mailed to the department payroll representative as indicated on the personnel action form. Payroll checks are mailed to employee’s home address listed in the HRS system.

The designated payroll representative is responsible for performing the following duties:

  • Missing Payroll Direct Deposit Notifications – When an expected payroll direct deposit notification appears to be missing from the direct deposits received by the department or school representative, the Payroll Department must be contacted. There are several reasons why a direct deposit may not have been issued or distributed, such as wrong check distribution code in employee payroll record, the delinquent submission of personnel action forms or payroll manifest.
  • Unearned Payroll Checks/Direct Deposit Notifications – If an employee is not entitled to a payroll check or direct deposit notice, the employee’s department or school representative must return it immediately to the Payroll Department. An incorrect payroll check must never be held by the employee or the department. The Payroll Department must cancel the check or direct payroll deposit and credit the budget source and the employee’s earnings records.
  • Delivery of Direct Deposit Notifications – It is the responsibility of the department or school representative to distribute direct deposit notifications within their department or school. If a payroll direct deposit notification cannot be distributed to the payee, the direct deposit notification, including an explanation, should be returned to the Payroll Department.
  • Replacement of Stolen or Lost Checks – If a payroll check is stolen or lost, the employee to whom the check was drawn should contact the Payroll Department immediately.

The employee must first execute an affidavit (in the presence of a Notary Public) before any further action can be taken. Once the Payroll Department has secured the affidavit, a Stop Payment Notice on the the lost or stolen check is issued to the State Treasurer’s Office. If the payroll check is found before the stop payment action has been put into effect, the Payroll Department must be contacted so the Stop Payment Notice can be canceled.

After the Payroll Department is notified by the State Treasurer that the stop payment action has been put into effect, a replacement check can be issued. (May take up to 10 days)

Before another check can be issued to replace a forged check, the employee must sign, in the presence of a Notary Public, an affidavit attesting to the fact that the endorsement on the check is not that of the affiant.