11-P-005 Implementation of Direct Deposit and Paycards Policy
|DATE:||August 20, 2010|
Implementation of Direct Deposit and Paycards Policy
|EFFECTIVE DATE:||Immediately (Full Implementation Deadline: Sept. 24, 2010)|
Information for Implementation of Direct Deposit or Paycard method and Availability of Employee Paycard Presentations
K.S.A. 44-314 provides the authority for employers in the State of Kansas to designate the method by which employees receive wages including electing to pay wages only by electronic funds transfer or deposit to an automated clearinghouse member financial institution account designated by the employee. An employer may elect to pay wages in this manner provided that the employer offers an alternative payment method as a default option, such as a payroll card, for employees who fail to designate a financial institution account for electronic funds transfer or deposit.
For payroll purposes, employees who currently receive a paper paycheck must be transitioned to either traditional direct deposit or a Skylight paycard no later than Sept. 24, 2010. All active and new employees who do not elect to have their payroll directly deposited to a traditional bank account will be required to establish a paycard account. Information concerning this new policy was initially announced on May 21, 2010.
Agency Paper Paycheck Report
To assist with this transition period, a new report, the KPAY208 Paper Paycheck Report is available each pay cycle in the MVS directory for agencies that have employees with paper paychecks. The report is available on the Monday prior to each paydate to identify all employees currently in an agency who receive a paper paycheck for all or a portion of their net pay. Agency personnel are encouraged to download and utilize this report to communicate the new policy and options for electronic payroll to those employees currently receiving paper paychecks.
DA-184 Authorization for Direct Deposit of Employee Pay and/or Employee Travel
The updated DA-184 Authorization for Direct Deposit of Employee Pay and/or Employee Travel is now available here. Please see Informational Circular 11-P-003 for more information regarding this new combined form.
The Department of Administration has renewed its partnership with Skylight Financial, Inc. (associated with U.S. Bank) to provide a Skylight paycard to employees who do not elect to have their payroll directly deposited to a checking or savings account. The Skylight paycard is an FDIC insured ATM/debit-based bank account where pay and other deposits, such as travel and expense reimbursements, can be made.
Employees can withdraw 100% of their payroll net pay from the paycard by a teller transaction at any VISA member bank by presenting their paycard and one form of picture id. Skylight has provided the attached VISA Bank
Teller Service handout that can be provided to employees if they experience any issues with completing a teller transaction for the full amount of their net pay. There is a daily limit of $2,000 for ATM withdrawals. The daily limit for POS transactions or cash withdrawal via a VISA-member bank teller transaction is $7,500 effective Aug. 25, 2010.
Agency Human Resource/Payroll professionals participated in Skylight Training in June and Skylight Paycard Instant Issue Packs have been issued to all requesting agencies. Any agency that requires additional training information or that did not initially request Skylight Paycard Instant Issue Packs and now wishes to obtain an inventory of paycards should contact Jennifer Holthaus at (785) 368-6313 or Jennifer.Holthaus@da.ks.gov to obtain further information. Please note that an employee cannot be required to designate a financial institution for direct deposit at which time the paycard becomes the default payroll payment option for the employee.
The new paycard contract provides increased benefits, convenience, and flexibility to employees. As an added benefit, Skylight will be auto-generating a name-embossed paycard for every employee following the first direct deposit to the paycard. This will be mailed to the address on the Skylight account and is at no cost to the employee. In addition, it does not count toward the employee’s one-free-per-year card replacement or upgrade. Employees will need to follow the instructions received with the card to activate the new name-embossed card. Electronic marketing materials are available for distribution to your employees here under the Skylight One section.
Attached is a sample Memorandum to Employees which can be used by your agency to assist in communicating this change to existing and incoming employees. Information should be provided to all existing employees who appear on the agency KPAY208 report and employees should be encouraged to take the necessary steps as soon as possible to request direct deposit to an existing checking and/or savings account or to sign-up for a payroll paycard.
Employee Paycard Informational Meetings
Payroll Services has scheduled employee informational meetings to provide an overview of direct deposit and the Skylight One paycard. The informational meetings will be available via webcast utilizing dimdim. Registration instructions for the dimdim broadcast are being provided via the SHARP Infolist to agency HR/Payroll personnel. Agencies are encouraged to arrange an agency meeting location, convenient for their employees, at which the webcast can be broadcast/projected or to provide the registration instructions to employees who require remote attendance. Employees should be encouraged to attend at the agency location or in person on the following dates:
|Wed., Aug. 25||1:30pm – 2:30pm||Rm 106||Landon State Office Building, Topeka|
|Thurs., Sept. 9||10:00am – 11:00am||Rm 106||Landon State Office Building, Topeka|
No exceptions will be granted for payroll payments to new or existing, active employees. The implementation of this policy will result in an estimated $250,000 annual savings for the State of Kansas. Special awards or payments requiring payroll processing for active or retiring employees should be paid to the employee via direct deposit or paycard.
Payroll payments required to be processed through the payroll system for terminated employees for whom direct deposit or paycard information cannot be confirmed may be made via paper paycheck, but only upon approval from the Director of Accounts and Reports.