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State to begin direct deposit of employee pay

As a cost-savings initiative, the State Controller’s Office expects to implement a new policy that requires direct deposit of paychecks for all state employees, effective this July. State Controller Donna M. Jones announced the new policy earlier this month after informing the Joint Finance-Appropriations Committee of its intent in January.

“Our plan is to require all state employees paid through the State Controller’s Office (SCO) payroll system to be paid by direct deposit, unless exempted by their respective appointing authority and our office,” Jones said in a recent memo to payroll personnel.

Several factors led to the new policy, including substantially lower costs in creating payroll warrants, distributing the warrants to state agencies, reissuing lost warrants and tracking outstanding warrants.

“Furthermore, direct deposit is also a more efficient process for paying employees during unforeseen disasters,” Jones wrote.