Payroll Policies

PR11 Salary Deposits and Distribution of Payroll Checks

Policy Status
Active
Subject Matter Expert
Director, Payroll, payroll@psu.edu
Policy Steward
Associate Vice President for Budget and Finance

Table of Contents

Purpose

This outlines the Pennsylvania State University (“University” or “Penn State”) policy concerning deposit of employees' salaries in most financial institutions nationwide.

Scope

This policy is applicable to all members of the Penn State Community and applies to all locations and operations of the University, including the College of Medicine. Penn State Health and The Pennsylvania College of Technology, each having separate policies, are exempt from this policy. This policy also applies to all types of University funds.

Policy

Direct Salary Deposit Participation

All employees are required to enroll in direct deposit as a condition of employment.

Deposit Request

All employees may avail themselves of the University's deposit service by updating direct deposit information through Workday.

Direct deposits may be routed to U.S. financial institutions and are able to be split between multiple bank accounts.

Changing Direct Deposit Information

Update direct deposit information on the Workday site.

Please contact the Payroll Office at payroll@psu.edu as soon as possible to be instructed about the steps needed to be taken when the bank account into which your salary was deposited has been closed.

Internal Control

To provide adequate internal control, payroll document preparation should be completed, whenever possible, by someone not involved with paycheck distribution in the department.

Violations

Violations of University policy should be reported to the appropriate supervisor, unit manager, Human Resources representative, or the office responsible for the relevant policy or procedure. If these channels are insufficient or unavailable, individuals may submit an anonymous report through the Penn State University Hotline, accessible via the Reporting at Penn State website.

Sanctions or Non-Compliance

Units that do not follow the guidelines set forth in this policy will, at a minimum, be held responsible for any fines, penalties, or losses.

Further Information

For questions, additional details, or to request changes to this policy, please contact the Payroll Office.

Policy Status

Most Recent Changes

  • September 23, 2025 - policy review cycle. Revisions approved by the Senior Vice President for Finance and Business
    • Subject Matter Expert updated from Manager, Payroll to Director, Payroll
    • Purpose statement updated to include the full name of the Pennsylvania State University
    • Direct salary deposit participation is mandatory
    • Employees (Hired prior to November 1, 1993) not using direct deposit statement removed
    • Violation statement added
    • Sanctions and Non-Compliance statement added

Revision History

  • February 1, 2023 - Editorial changes:
    • Changed all references to the the Associate Vice President for Finance to the Associate Vice President for Budget and Finance, per the directive of the Senior Vice President for Finance and Business.
    • Changed the SME from the name of an individual to their title, per the directive of the Associate Vice President for Budget and Finance.
  • January 5, 2023 - Editorial changes. Changed all references to the Office of Corporate Controller to the Office of Budget and Finance, per the directive of the Associate Vice President for Finance
  • September 2, 2022 - Editorial change to change Policy Steward from Associate Vice President for Finance and Corporate Controller to Associate Vice President for Finance
  • December 6, 2017 - PR11 is under review due to WorkLion implementation.
  • May 29, 2013 - Removal of the following sections, to reflect current operations, as direct salary deposits have been required for employee hires since 1993, making this information non-applicable for the vast majority of employees:
    • Check Distribution - Employees Paid Monthly Hired Prior to November 1, 1993
    • Check Distribution - Employees Paid Biweekly Hired Prior to November 1, 1993
    • Monthly Employees Absent on Payday
    • Regular Biweekly Employees Absent on Payday
    • Non-Regular Biweekly Employees Absent on Payday
  • March 22, 2005 - Editorial changes to eliminate "General Forms Usage Guide" references, and correct links.
  • March 6, 2003 - Eliminated the section AUTOMATIC CESSATION OF DEPOSIT; eliminated procedural notes regarding the mailing of paychecks to departmental mailrooms.
  • June 18, 1997 - Distribution of paychecks revised. Also adjusted the escheats instructions for checks not picked up after 30 days.
  • November 22, 1983 - Employees picking up checks must show verification of identity.
  • November 17, 1988 - Employee must request in writing to have paycheck mailed.
  • May 10, 1988 - Changed "Commonwealth Campuses" to "locations other than University Park."
  • June 12, 1986 - Added section AUTOMATIC CESSATION OF DEPOSIT.
  • March 14, 1986 - Included wage payroll in salary deposit program. Added provision for disposition of unclaimed checks.
  • February 15, 1984 - Minor editorial changes.
  • December 10, 1982 - Excluded wage payroll from salary deposit program.
  • September 17, 1982 - Request for authorization to mail paychecks now directed to Financial Officer instead of Deputy Controller.
  • July 1, 1981 - Minor editorial changes.
  • June 20, 1980 - Request for pickup of wage payrolls checks must be submitted two weeks in advance rather than four days.
  • July 14, 1979 - Changed method for Non-Regular employees absent on pay day.
  • April 17, 1978 - Standing and fixed-term employees checks are sorted by administrative area. Payroll document preparation and check distribution not to be handled by same individual.
  • Date Unknown - New policy.
Date Approved
Date Published
Effective Date