This bulletin supersedes Payroll Bulletin 422

Purpose

The purpose of this Bulletin is to notify agencies of the procedures to be used when requesting a stop payment or reversal of a direct deposit transaction.

Affected Employees

Direct deposit enrollees who would be overpaid if a direct deposit transaction is not stopped or reversed are affected.

Background

Generally, the State payroll is confirmed one week before payday. This allows sufficient time for the checks and direct deposit advices to be printed, delivered to agencies and distributed to employees.

When an employee is enrolled in direct deposit, funds are automatically deposited into the employee's checking or savings account. Agencies cannot use form AC230, Report of Check Returned for Refund or Exchange, to process a paycheck reversal for employees in direct deposit until the funds are successfully recovered.

After paychecks are confirmed, agencies must use the AC3197, Request for Direct Deposit Stop/Reversal, to stop or reverse the direct deposit transaction.

By enrolling in direct deposit, the employee and any joint account holder allows the State, through the financial institution, to debit the account in order to recover any salary to which the employee was not entitled or that was deposited to the account in error. Refer to the authorization on the AC2772, Direct Deposit form for further information.

Effective Dates:

Immediately

OSC Actions

OSC will initiate the AC3197 requests received prior to 1:00pm daily.

If the funds are recovered, OSC will notify the agency and take the appropriation action based on the corresponding documentation submitted, AC230 or AC1476-P, Report of Check Exchange.

Agency Actions

Agencies should send the AC3197 request to the [email protected] email. One form should be submitted for each check date. Requests can be processed up to five business days following the check date per the National Automated Clearinghouse Association (NACHA) regulations.

Agencies should submit the AC230 or AC1476-P to the [email protected] email at the same time as the AC3197 submission.

Agencies should notify the employee of actions taken and make the appropriate cancelations or updates to the employee's direct deposit record in PayServ if necessary.

Questions

Questions regarding this bulletin may be directed to the [email protected] mailbox.