State Agencies Bulletin No. 2117

Subject
Payroll Check Reissues, Reversals, Exchanges, and Direct Deposit Returns during the Statewide Financial System (SFS) Blackout for Fiscal Year End
Date Issued
March 21, 2023

Purpose

The purpose of this bulletin is to notify agencies that OSC will be unable to print SFS checks for Payroll Check Reissues, Reversals, Exchanges, and Direct Deposit Returns during the SFS blackout period.

Affected Employees

Employees whose direct deposits are returned from their financial institution for any reason, whose direct deposit is reversed due to an overpayment, who request a check exchange, and who request a Payroll Check Reissue for any reason are affected.

Background

The Statewide Financial System will be unavailable for use due to fiscal year end processing.

Effective Dates

Effective from March 30, 2023, through the completion of SFS fiscal year end processing.

OSC Actions

Direct Deposit Returns

OSC will continue to receive and process direct deposit returns from financial institutions. OSC will prepare all transactions to be submitted to SFS for check printing when SFS becomes available. Therefore, employees whose direct deposits are returned from the receiving financial institution during this period will not receive a check to replace the returned direct deposit until approximately five to seven (5-7) business days after the SFS blackout period ends.

Direct Deposit Reversals

OSC will continue to receive and process direct deposit reversals to and from financial institutions for employees who were overpaid by the agency. OSC will prepare transactions for all direct deposit reversals received from financial institutions to be transferred for salary exchange processing when SFS becomes available. Therefore, reversal funds will not be available to process a Report of Check Returned for Refund or Exchange (AC-230) until after the SFS blackout period ends.

AC-230s

AC-230s submitted to reverse the overpayment in PayServ will continue to be received and audited by OSC. However, if the AC-230 corresponds with a direct deposited payroll check the AC230 will not be processed to reverse the paycheck in PayServ until the corresponding direct deposit reversal is processed in SFS. If the employee is due a portion of the reversed payroll check this portion will not be issued to the employee until the SFS blackout period has ended.

Paper Check Stops, Reissues and Exchanges

OSC will continue to receive, and process stop payment requests through PayServ. OSC will prepare transactions for all reissue and exchange requests received to be submitted to SFS for check printing when SFS becomes available. Therefore, checks will not be reissued until the SFS blackout period has completed.

Note: The Payroll Check Notification Report will not be updated until the SFS blackout period has ended.

Agency Actions

Agencies must ensure employee direct deposit account changes and updates are completed as soon as possible. If an employee notifies the payroll office of a direct deposit account change or closure during the SFS black out period, ensure the employee’s Direct Deposit panel in PayServ is updated immediately.

Agencies must continue to submit AC-3197 Direct Deposit Reversal forms, AC-1476 Check Exchange, AC-230 Reversal forms and request stop payments through the PayServ worklist for OSC processing.

Questions

Questions regarding this bulletin may be directed to the DD Returns and Reversals mailbox or the Payroll Reversal and Exchange mailbox, as appropriate.