Administrative Procedure 8.802 Administrative Procedure 8.802



Title

Requirement of Direct Deposit and/or ACH

Header

Administrative Procedure Chapter 8, Business and Finance
Administrative Procedure AP 8.802, Requirement of Direct Deposit and/or ACH
Effective Date:  December 2021
Prior Dates Amended:  March 2021    
Responsible Office: Office of the Vice President for Budget and Finance/Chief Financial Officer
Governing Board and/or Executive Policy: EP 1.102, Authority to Manage and Control the Operations of the Campus 
Review Date:  December 2024

I. Purpose

To establish policies and procedures for payments and reimbursements that require electronic payments (e.g. direct deposit, ETF and ACH) for UH employees, students and vendors. Electronic payments decrease costs to the University, increase the efficiency of processing, eliminate the risk of a mailed check being lost, altered or stolen, and take advantage of paperless and secure methods offered in today’s digital banking environment.  Electronic payments, except for payroll, will be run on a more frequent basis than physical checks so enrolling in all electronic payment methods that apply will ensure prompt delivery of payments/reimbursements.

II. Definitions

No policy specific or unique definitions apply.

III. Administrative Procedure

  1. General Procedures

  1. Payroll Payments:  Employees including student employees sign up for direct deposit through HawaiiPay (HIP).  This secure method of payment is directly deposited into the financial institution(s) as established by the employee in HIP.

    1. Hawaii State Statute (HRS 40-53) requires employees paid by the State of Hawai’i to assign their paychecks to a financial institution.

    2. Payroll processing will remain on the 5th and the 20th of the month (or the business day prior if these dates fall on a weekend or holiday).

    3. Employees and student employees who wish to receive a paper paycheck must request for an exception via the Direct Deposit Exception Request form.  All requests must be routed to the employee's respective Vice President/Provost/Chancellor or designee.  All exceptions will require Vice President/Provost/Chancellor and University of Hawaii President approval or designee.

  2. Employee Reimbursements and Allowances:  Employees in PeopleSoft who normally receive payments in the form of a paper check from the UH Disbursing Office for travel, mileage, expense reimbursement, etc. sign up for direct deposit via ePayment.  This secure method of payment deposits payments directly to the designated bank with a notification emailed to the employee of the upcoming deposit timing and amount.  ACH payments are processed on a more frequent basis so opting for a physical check will delay payment receipt.  (Student employees are NOT in PeopleSoft and should utilize section 4.)

  3. Student Refunds or Scholarship Payments:  Students receiving refunds for tuition and scholarships are required to sign up for direct deposit via eRefund, unless otherwise prohibited by state or federal laws and regulations.  This service is not available to the student’s authorized users within the TouchNet payment system.  For further reference, see AP8.770 - Student Refunds.

  4. Vendor and Other Payments:  Businesses or individuals who do business with the University and students employees requiring expense reimbursements sign up for direct deposit via the Electronic Funds Transfer Authorization (DISB-ACH) form.  ACH payments are processed on a more frequent basis so opting for a physical check will delay payment receipt.  To enroll fill out the DISB-ACH form.


IV. Delegation of Authority

There is no administrative specific delegation of authority.

V. Contact Information


VI. References

Link to superseded Executive Policies in old format https://www.hawaii.edu/policy/archives/ep/

Link to Administrative Procedures in old format https://www.hawaii.edu/policy/archives/apm/sysap.php

VII. Exhibits and Appendices

None

Approved

    Signed    
    Kalbert Young    
    January 07, 2022    
    Date    
    Vice Pres for Budget & Fin/CFO

Topics

Direct Deposit; ACH; Electronic Payments; Payroll

Attachments

None