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Payroll... Direct Deposit of Pay - FAQ

What is Direct Deposit?

Direct Deposit means your paycheck will go directly to your bank on payday without you having to make a trip to the bank to deposit your check. Direct Deposit is a major ACH (Automated Clearing House) application used to automatically deposit recurring payments into an individual's account. The ACH is a centralized clearing facility operated by the Federal Reserve. The ACH receives debits and credits from sending banks and distributes them to other Automated Clearing Houses for distribution to receiving financial institutions. The receiving financial institutions receive paperless entries from the local ACH and post them to the accounts of its depositors .Instead of printing checks, payroll produces a computer tape containing a record for each participating employee. This information is then processed through the ACH system and individual payroll entries are routed to the appropriate receiving financial institutions for posting to the employee's accounts.

Are all employees required to use Direct Deposit?

No one is required to use direct deposit. It is totally the employee's choice to elect to use the direct deposit program. Some of the reasons employees elect to use direct deposit are:

  • Convenience - pay is automatically deposited on payday, during vacation, illness, or when away on business
  • The possibility of a lost or stolen paycheck is eliminated
  • Lunches no longer include trips to the bank and waiting in line

Is Direct Deposit available to all employees?

Yes, direct deposit is available for all UT Houston Health Science Center employees.

Does it cost anything to have my check Direct Deposited?

No, it is a free service.

Will I get a check stub?

Employees who elect direct deposit will receive an earnings statement with detailed salary, deduction, benefit and tax information.

How does the ACH (Automated Clearing House) know where to send my money?

When you enroll, you complete an Authorization Agreement for Direct Deposit form. You will be providing all information required to enroll in direct deposit and to let Payroll and your bank know of your election to use direct deposit of pay. A bank transit number and your savings or checking account number are required information on the agreement form. They can be found on the bottom of your check or deposit ticket. This number identifies your financial institution for ACH and identifies your account number for use by your bank.

What happens if I change banks?Voluntary change:

A change in bank is an example of a voluntary change - one that you make. A bank change does affect your original enrollment and will require completion of a new Authorization Agreement for Direct Deposit. The form should be submitted to Payroll immediately so the new information can be used for future direct deposit transmittals.

Involuntary change:
Another kind of change requiring a new Authorization Agreement for Direct Deposit form is an involuntary change - one in which you have no control. A buy-out of your bank that may involve a change in the bank transit number affecting the routing of future deposits into your account is an involuntary change.

What if my bank is out of state?

No problem. You can use any bank, savings and loan, or credit union in the continental United States that participates in Electronic Funds Transfer (EFT).

What do I have to do to enroll?

Complete the Authorization Agreement for Direct Deposit form and return it with a voided check or pre-printed deposit ticket for each account listed on the form to Payroll, UCT 10th Floor. See Enrollment Examples if you need help in completing the form.

How long will it take from the time I turn in the Authorization Agreement for Direct Deposit and the first actual Direct Deposit to my account(s)?

Once information is entered in the payroll system, your enrollment information will be picked up on the next tape to the bank and as a live data transmittal of pay. For questions, you may contact the Payroll office at 713-500-3962.

What if I get a paycheck other than my regularly scheduled paycheck - for example, a retroactive salary increase?

Off-cycle paychecks are paper checks only and will require you taking them to the bank for deposit.

How can I be sure the Direct Deposit is in my bank?

Via your bank's customer account telephone service, using your ATM card or by contacting the ACH/Wire Transfer department of your financial institution for verification of deposit. Banks are also required to notify depositors of electronic debits or credits to their accounts which is usually done through the monthly bank statement.

To help alleviate problems and questions regarding funds availability, CHASE Bank of Texas recommends we provide all of our employees who are interested in Direct Deposit with the following statement:

Most Receiving Financial Institutions receive credit entries the day before the effective date, and these funds are routinely made available to their depositors as of the opening of business on the effective date.

However, due to geographic factors, some Receiving Financial Institutions do not receive their credit entries until the morning of the effective day and the internal records of these financial institutions will not be updated. As a result, tellers, bookkeepers, or Automated Teller Machines (ATMs) may not be aware of the deposit and the customer's withdrawal request may be refused. When this occurs, the customer or company should discuss the situation with the EFT or ACH Coordinator of that institution who, in turn, should work out the best way to serve their customer's withdrawal needs.
In all cases, credits received should be posted to customer accounts on the effective dates and thus be made available to cover checks or debits that are presented for payment on the effective date.

Do I need to call my bank and tell them I have enrolled in Direct Deposit?

No. Your bank will be notified through the pre-notification tape as it routes through the Federal Reserve and ultimately to your bank and your account. If there is any problem with your account number or transit number, our bank (CHASE Bank of Texas) will notify Payroll and you will be contacted if corrections need to be made.

Can I change my initial enrollment request?
Yes, you can change at any time. Remember you must submit a change when your bank changes names, etc. During that time, if the regularly scheduled payroll processes, you will receive a paper check.

Can I request part of my check be deposited in my checking account and part of it in my savings account? Yes, you can do this within the same financial institution or between two separate financial institutions.

In addition, you can choose to distribute your dollars as a flat amount or a percentage of the total check. Whichever option you choose, 100% of the total check must be direct deposited. You cannot have part of it deposited and the balance on a paper check.
Refer to Enrollment Examples for help in completing the application form.

What happens if payday falls on a bank holiday?

If the regularly scheduled payday falls on a bank holiday, your check will be deposited the next banking day.

Can I get off Direct Deposit if I decide to at a later date?

It is always your choice to participate in direct deposit of pay. If you decide you no longer want to participate, simply complete an Authorization Agreement for Direct Deposit form and check the "discontinue" box, sign it and forward to Payroll, UCT 10th Floor. As soon as your request is received and processed, you will start receiving paper checks again.

If I have further questions, whom do I call?

Call Payroll, 713-500-3962. We're here to help you!

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Last updated February 7, 2007