Payroll Standard Operating Procedure 7.0: Paycard Information

SUBJECT:

Paycard Policy Information

SOURCE:

Financial Management Services

ORIGINAL DATE
OF ISSUE:

March, 2010

DATE OF
LAST REVISION:
January, 2011
PSOP NO: 7.0
RATIONALE:

To provide an alternate method of payment for those individuals who do not/cannot have direct deposit of their paychecks. 

PSOP: IU automatically issue paycards to employees who have not signed up for direct deposit. This affects both current employees who have not enrolled in direct deposit and new hires going forward. All faculty and staff who have not enrolled in direct deposit no longer receive a paper paycheck mailed to their homes. Instead, they have the choice of enrolling in direct deposit or receiving a Visa paycard. Once direct deposit info is received, IU will no longer deposit payroll payments on a paycard. 

For new employees, the paycard will be issued prior to the second payroll payment. The first payroll payment will be a paper check that the employee picks up in their campus payroll office. When the employee picks up their paycheck, they will be asked to sign up for direct deposit. If they are unable to sign up at the time of picking up their paycheck, they will be issued a Visa paycard and future payrolls will be loaded on the the paycard. The paycard can be used at any ATM to withdraw cash or at any vendor who accepts PIN based transactions. Employees can also withdraw all their funds at any US bank that accepts Visa. Those employees who do have bank accounts can transfer funds from the debit card directly to their bank account online.
CROSS
REFERENCE:
See the following policies, 
Payroll PSOP 1.0: Fiscal Officer's Procedures to Ensure Compliant, Accurate and Timely Payroll Processing: PSOP1_Fiscal_officer

Payroll Administration Policy IV - 40, Distribution of Payroll Checks: FIN-PAY-IV-40 

Payroll Administration Policy IV - 20, Direct Bank Depositing of Employee Wages: FIN-PAY-IV-20

RESPONSIBLE
ORGANIZATION:
Financial Management Services