To advise agencies that the minimum allowable contribution to New York's College Savings Program has been reduced from $25.00 to $15.00
In 1998, New York's College Savings Program began operations. This Program allows individuals to save for higher education expenses.
Employee participation in the College Savings Program is accomplished by completing the College Savings Payroll Deduction form for NYS employees. This form is available to employees through the Program's toll free number at 1-877-NYSAVES.
The employee should complete the form and indicate whether the request is for a new, changed, or canceled direct deposit.
After completing the form, the employee should send the white copy to the College Savings Program in the business reply envelope the employee received; this copy should be returned as soon as possible to avoid delays in processing contributions. The canary copy is for the employee's records. The pink copy is to be sent to the agency payroll office.
Contributions to a College Savings Program Account will be processed as a direct deposit of a fixed amount. The minimum amount is $15 per pay period. The contributions are not pre-tax deductions and will not affect an employee's tax withholdings.
Agencies should process the form in the same manner as the current direct deposit form. The bank transit number and a portion of the account number is preprinted on the form: the employee should have entered his or her Social Security Number as part of the account number in the space provided.
Do not enter direct deposit requests dated less than seven days from the time the employee signed the request. Hold any direct deposit requests submitted before the seven day period; the waiting period is important to ensure that deposits are processed properly by the College Savings Program.
When entering the new direct deposit information select the following:
- "Partial Allowed"
- Account type "Checking" - Do not select the "savings" account type
- The Priority must be lower than any transaction labeled as "Excess"
- The amount being deposited should be entered into PaySR as a deposit of a fixed amount; the minimum amount is $15 per pay period.
NOTE: Requests to deposit amounts less than $15 should not be processed and should be returned to the employee.
Payroll Register and Employee's Check/Advice
The employee's pay stub will show a separate line for this deposit with an account type of checking. After receipt, contributions will be transferred from this account to the employee's College Savings Program account.
Questions regarding this bulletin may be directed to the Payroll Deductions mailbox.