Payroll Services (PAY)
POLICY 7
Effective Date: 01/01/1999
Last Modified Date: 09/02/2008
Policy Statement
Direct deposit will cease upon termination of employment or break of service in any position, including changing positions within the University. Payroll Services will generate a check for the final pay period. Direct deposit may be reinstated in the case of a change in employment status (SPA to EPA or vice versa) or if the employee returns to the University. The Human Resources Facilitator shall request reinstatement of direct deposit for faculty and student reappointments by providing direct deposit information (NO emails unless using a scanned authorization) to Payroll Services as stated below:
New employee: Provide original direct deposit authorization with voided check
Reappointment: Direct deposit of pay will continue for reappointments that do not have a break in service. If there is an error in not reappointing employee or employee doesn't get paid and manual check is produced, Payroll will reinstate by the previous biweekly/monthly information.
Reappointment: If there is a break in service, provide either a new direct deposit authorization, a copy of the original authorization, or the “W” screen, signed and dated by the employee.
Students: If there is a break in service, provide either a new direct deposit authorization a copy of the original authorization or the “W” screen, signed and dated by the employee (same as with reappointments).
Temporary to Permanent and vice versa: Payroll will use last banking information on record as there will be NO break in service.
SPA to EPA status: Payroll will use last banking information on record as there will be NO break in service.
Reason for Policy
Direct deposit allows paperless transmittal between the University and banking institutions and provides a safe, reliable method for ensuring employees receipt of their pay. Use of electronic direct deposit of pay statements is a more efficient and cost-effective method of notification to employees.
Exclusions
The policy applies to all faculty, staff, student employees, and temporary employees. An exception for compelling reasons will be considered by the Vice Chancellor for Finance and Administration or his designee.
Special Situations
Banking institutions generally require a valid social security number to establish a bank account. Foreign nationals may be temporarily paid by check if there is a delay in obtaining a social security number with the stipulation that enrollment occurs upon receipt of a social security number. Until the appropriate direct deposit authorization is completely processed, the employee will receive a paper check.
Employment Eligibility Verification (EEV) is necessary for new hires, and the pay cycle for faculty, post-docs, and EPA student employees is considered a special situation. Direct payroll deposit authorization forms should not be submitted for processing for new hires until an employee reports for work and completes the federal Form I-9 witnessed by an authorized hiring/appointing department official or other official authorized by the EEV unit in the University’s Office of Human Resources.
A paycheck is also written for the final paycheck for a terminating empoloyee.
Frequently Asked Questions
Q: How do I enroll in direct deposit?
A: The appropriate Direct Payroll Deposit Authorization should be completed, signed, and forwarded to your HRF along with a voided check. Faculty, post-docs, and EPA student employees (EPA rank codes 01 – 05 and 20 – 28) use the Direct Payroll Deposit Authorization (PR-8A) form. A separate form is used to provide for departmental certification to assist with compliance with EEV requirements. EPA non-faculty staff (EPA rank codes 06 – 19) and SPA permanent, temporary, student employees will use the Direct Payroll Deposit Authorization (PR-8B) form. The Direct Payroll Deposit Authorizations (forms PR-8A and PR-8B) are available online (see forms below).
Q: What is the distribution process for paychecks that are written?
A: Effective July 1, 2008, paychecks written consistent with the direct deposit of pay policy (such as the final paycheck for a terminating employee and the first paycheck for new faculty, post-docs, and EPA graduate students to allow compliance with EEV requirements) shall be picked up by the departmental HR Facilitator at Payroll Services in Suite 3600 of the Administrative Office Building between the hours of 7:30 a.m. and 4:30 p.m. on paydays. Other paychecks written (such as paychecks for employees who have requested an exception and it has been honored) will be mailed out on payday to the employee’s home address on file in the Payroll system.Q. How will department personnel know if they need to pick up paychecks?
A: Each Human Resources Facilitator or the person that is deemed responsible for disbursing pay in their department should check the online 01 check register each pay cycle to determine if there are check/s to pick up for employees. The online 01 check register is available on the day after payroll is run for both biweekly and monthly.Q: How do I know if there is a change in the method of picking up checks for my units?
A: If in the past you have picked up your departments' checks/direct deposit stubs at Bynum Hall, then as of July 1, 2008, you will pick up checks from Payroll Services as we will no longer be providing an on-campus distribution site for departments. If you are a decentralized unit e.g., School of Dentistry, School of Medicine or School of Public Health, your process of picking up checks will continue with your current payroll processes.
Related Data
Access to online pay information http://finance.unc.edu/asst.-vc--controller/payroll-services/welcome.html, (known as an electronic stub) is available each cycle for all employees that have a University Onyen.
Forms
Direct Payroll Deposit Authorization (PR-8A) form (DOC format)
Direct Payroll Deposit Authorization (PR-8B) form (PDF format)
Return to Payroll Services Section Contents
Return to Business Manual Table of Contents