Financial Administration

Payment Methods and Timing for Payroll (G32)

Revised: April 21, 2004


  1. Background

    This paper sets forth systemwide policy related to the methods and timing of payroll payments to University employees. In order to assure that all employees (classified, unclassified and student hourly) receive equal treatment, the following UW System policy is established:

  2. Policy

    The University directs that all employees participate in an electronic direct deposit program (ACH) for their payroll payments. For those few employees who are not able to establish a banking relationship, the University will seek to establish a banking relationship (such as a Debit Account) on behalf of the employee that will accept direct deposit transmissions. Automatic deposit of employee wages directly into their bank account streamlines payroll operations, increases productivity, and provides many benefits to the employee. It is a free of charge service that offers a fast, dependable, and safe method for university employees to receive their payroll payments. It eliminates the possibility of a lost or stolen check and with the implementation of the new Human Resources Information Services (HRIS) system, will allow employees to direct portions of their payroll payments to multiple financial institutions.

    1. Electronic Payroll Settlement Date and Date of Payroll Payments

      The settlement date of the electronic direct deposits and the date of the payroll payments will be the same date for all established pay schedules. When the normal payday falls on a Federal Reserve holiday, a Saturday or Sunday, the settlement date shall be the previous non-Federal Reserve holiday or the previous Friday if the pay date falls on a Saturday or Sunday. The exception to the above policy is the unclassified monthly pay date that would fall on New Year's Day (January 1). To avoid tax-related problems, the pay date for the monthly unclassified December payroll period will be the next business "bank" day following the New Year's holiday.

      This policy is in accordance with the various employee collective bargaining contracts, Office of State Employment Relations directives and the University Monthly Unclassified and Student Help payroll calendars.

    2. Distribution of Exception Payroll Checks

      In the rare case where a paper payroll check is processed, the University will comply with the directive issued by the State Treasury to all state agencies. This directive states that checks should not be distributed to payees earlier than the official payment date for that particular payroll. Limited exceptions to this restriction may be granted by the institutional payroll office to individual employees who are involved in some unique circumstances. Second shift employees are permitted to receive their checks on the preceding work day, at a time no earlier than completion of their work shift that day.

      Financial institutions that receive paper payroll checks are instructed not to negotiate the checks prior to the date appearing on the check.