Congratulations on your decision to use Payroll Direct Deposit. It is the safe, private, and convenient way to get paid. And managing your direct deposits through your MI HR employee self-service account puts you in control!
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| If you want to transfer a Credit Union deduction, see the Transfer your Credit Union Deductions to Direct Deposit user guide. |
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How to use this Guide:
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| Getting Started |
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In order to set up a Payroll Direct Deposit, you will need to know three things: the routing number for your credit union or bank, the account number where you want your pay deposited, and the type of account (checking or savings). The routing number is the nine- digit number located in the lower left-hand corner of your personal check. Your checking account number is right after the routing number. The checking account number can be up to 17 digits long. Ignore any symbols or squiggles; all you need are the numbers. If you want your payroll direct deposit to go to your savings account, you need to enter your savings account number, located on one of your deposit slips or your last credit union or bank statement. If you have any questions about your routing transit number or your account number, contact your credit union or bank - they will be pleased to help you. Otherwise, you are ready to go!
Log in to your employee self-service account, select the Employee menu, click on Pay, and then Direct Deposit. The screen below should come up.
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| Before you take the next step, click on the Tips icon |
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| The Tips icon gives you a pop-up screen with the following helpful background information: |
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Tips: Direct Deposit Account
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Effective Date
Changes made on this screen may or may not be reflected by the next payday, depending on your payroll cutoff. That is, if you update a direct deposit account the day before payday, it is unlikely that your change will appear by the next payday following payroll cycle.
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Number of Accounts
The number of direct deposit accounts you may add is stated on the top of the screen. If you reach the maximum, you must revoke an account before adding another one. |
Amount
If you enroll in direct deposit, you must deposit all of your net pay. You cannot use direct deposit for a portion of your pay and receive the remainder as a paycheck.
You may specify the amount to be deposited as a flat amount or as a percentage of the total net pay amount. When entering a percentage, do not precede the amount with a decimal point. For example, enter '50' for 50%.
If you would like to split your pay between two accounts, for example, set up one account at 50% and the other account as your default for the remainder of your net pay. |
Default Account
A default account is where any remaining net pay will be deposited (pay that has not been designated for any other specific account). If you have only one direct deposit account, the system requires that it be designated as your default account. If you have more than one account, the system requires that you designate one account as your default account. Any remaining pay left over after amounts to other accounts have been deducted will be deposited into your default account. |
Default Example (Full Auto Deposit)
For example, you have set up two accounts: A checking account and a savings account. You have determined that your checking account will be your default account. If your net pay is $1,000, and you directly deposit $50 into your savings account, the amount directly deposited into your checking (default) account is $950.
If for some reason you should receive $100 of additional pay (bonus/commissions/overtime), your net pay would be $1,100. Of this, $50 would go to your savings account and $1,050 would be directly deposited into your checking account (because any remaining net pay is directly deposited to the default account). |
Deposit Sequence
Deposits are made into your accounts in the order in which you enter them into the system, except for your default account. Your default account is always deposited last. However, you can change the deposit sequence for all accounts (except the default account) by clicking the 'Re-Order' button.
If there is not sufficient remaining net pay to fulfill a deposit sequence, then that account will be skipped entirely. For example, if you specify a flat amount of $2,000 for your first account with the balance to your default account, but you only earn $1,600 net pay, your first deposit sequence will be skipped entirely and the balance will then be subject to the next deposit sequence (the default account in this example). |
Prenotification Process
Please note that the first pay period after initially enrolling in direct deposit, you will still receive a payroll check due to a pre-notification process. Prenotification is where a zero dollar deposit transaction is sent through the system to validate the Routing and Account Numbers. If you add additional accounts in the future, those changes do not take effect immediately due to the prenotification process. If you had been previously receiving direct deposit and you revoke your existing account(s) and add a new account(s), you may receive a paycheck while the new account information goes through the prenotification process. |
When you are finished with the Tips pop-up window, scroll to the bottom of the window and click the Close button so the pop-up window disappears. Next click the Add button. |
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| The Direct Deposit Authorization pop-up window appears with the statement below. If you agree with the statement, click the little circle that says "I agree with the above." This is given the same weight as your written signature, so be sure you do agree; otherwise click the little circle that says "I do not agree with the above" and the Direct Deposit process will be cancelled. |
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| Direct Deposit Authorization: I authorize the STATE OF MICHIGAN to deposit the pay owed me by the State, by direct deposit (electronic funds transfer) into the designated financial institution(s) and account number(s). I understand this authorization remains in effect until revoked (canceled) by a) me on-line, b) my death or legal incapacity, c) the STATE OF MICHIGAN, or d) my separation. You can revoke this authorization at any time by clicking on the Direct Deposit link, and selecting "revoke" beside the account you wish to cancel. |
I authorize the STATE OF MICHIGAN to recover money electronically deposited into my account(s) in error, either by adjusting or debiting the account(s), or withholding future payments. I understand I will be notified by the STATE OF MICHIGAN if adjustments or debits are being made.
I consent to and agree to comply with the National Automated Clearing House Association Rules and Regulations and the STATE OF MICHIGAN's rules about electronic funds transfers as they exist on this date or as subsequently adopted, amended or repealed. Michigan law governs electronic funds transactions authorized by this agreement in all respects except as otherwise superseded by federal law.
If more than one signature is required to authorize withdrawal of funds, I understand I must complete and submit a Payroll Direct Deposit Authorization form bearing all required signatures to my Human Resources Office instead of using Employee Self-Service authorization.
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When you agree to the Direct Deposit Authorization statement, a dialogue window appears and asks you how many accounts you wish to add. You may have up to four active direct deposits at any time. For this example, just enter one and then click Continue. You can always come back and add more direct deposits. |
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Now you are almost ready to designate where your Payroll Direct Deposit will be going! But first, you may want to click on the Tips icon, and read about how the sign-up form actually works. When you are done with the Tips, click close and you will be back to the sign-up form, which is made to look like a check. |
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Tips: Direct Deposit Account
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Financial Institution Name
The Financial Institution Name will appear only after you have entered a valid Routing Number in the Routing Number box. |
Type of Account (Checking - Savings)
Typically, if you can write checks against an account, it is a checking account. With a savings account, you do not write checks against it and, generally, use deposit or withdrawal slips only.
You must specify a transaction account (checking or savings) for direct deposit. Usually this does not include loan accounts. To make a loan payment, you should deposit your pay into your checking or savings account. Then check with your financial institution to arrange for an automatic transfer at the financial institution. |
Amount
Because this is a default account, the system automatically defines the amount as 100% |
Routing/Account Numbers
Sometimes the numbers on checks and deposit slips differ, so it is important that you determine your Routing and Account Numbers by looking at one of your personal checks (rather than a deposit slip). If you are adding an account for a credit union or a savings account, we suggest you confirm the Routing and Account Numbers to be used for direct deposit with that institution.
The Routing Number is the nine digit number that usually appears in the bottom left corner of your check. It is also referred to as an ABA number or Routing Transit Number. The Account Number is printed next to the Routing Number on the bottom of your check.
You must already have the Routing Number of your financial institution available before you add a new direct deposit account. The Financial Institution Name will appear once you enter a valid Routing Number. |
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Adding Your Very First Direct Deposit
When you get to the Add Record Window, it takes only four quick steps!
- Click the box to indicate Type of Account; Checking or Savings.
- Enter the Routing Number in the space provided.
- Click in the Financial Institution space. If you entered a valid routing number, the correct institution name will automatically appear. (So if the name of your Bank or Credit Union doesn't show up, there is a problem with the number you entered!)
- Enter the Account Number in the space provided.
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| Here is what the form looks like filled out: |
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| Before you click the Add button, notice that the Amount is set at 100%. With only one direct deposit, it is automatically set to receive all of your net pay (i.e., 100 percent of your Total Net Pay). |
| Once the add process is complete, your Direct Deposit page should look like this: |
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Notice the following:
- At the top of the page, it now says you may add three accounts (remember that you can have up to, but no more than, four direct deposits).
- You have a blue revoke link, which you may use to cancel this direct deposit.
- You have a red default indicator. You must have a default account where any money you are owed that is not otherwise deducted will be deposited. If you only have one direct deposit account, it automatically becomes the default account.
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| Please remember that the Added date is when you set up this account for direct deposit. The first payroll processed by the State after the Added date uses your account information for prenotification. If the prenotification occurs without a problem, the very next payroll processed by the State will be the first time pay is deposited in your account (i.e., the Effective date is the first pay date when money is actually deposited in your account). If a prenotification problem does occur, you will be notified by your agency Human Resources Office. |
Changing Existing Account to Another Account |
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If you want to change your Flat Amount or the Percentage of Net Pay Amount for an existing account when the account number does not change, you can do so by clicking the "Change" button next to the particular account. You can only change the Flat Amount or the Percentage of Net Pay Amount through the "Change" button. You cannot change between a checking and a savings account (or vice versa) even when the account number is the same by using the "Change" button. The new account is considered to be a separate account and must go through the Pre-Notification Process. To accomplish this, you must first revoke the existing account (if necessary), then add the new account as a separate account as described below.
If you are changing banks, changing bank accounts at the same bank, or changing from a checking to a savings account (or vice versa) at the same bank, and you do not want to continue using your existing account, you should first add the new account and then revoke the existing account. (NOTE: If you already have four accounts, you will need to revoke first and then add).
To revoke an existing account, click the "Revoke" button next to the account.
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Confirm your wish to revoke the account by clicking the "OK" button. |
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Click the "Add" button to add new account information. |
Enter the number of new accounts you plan to add and press "Continue" |
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Enter the account type, Bank Routing Number, and the Account Number and click the "Add" button. Since this example is a single account, it is already indicated as the Default Account at 100%. |
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Your new account is now on file. The new account information must go through the Pre-Notification Process and will not be immediately effective. You should receive a warrant instead of direct deposit for one pay period while the new account information finishes the pre-notification process. NOTE: If you do not wish to receive a warrant for one pay period, add the new account for any amount and keep the old account as the default. When the new acccount shows up at the bottom of your on-line earnings statement, it confirms that the new account has been through the pre-notification process. At that time you can make your new account your default account and revoke the old account. |
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Adding More Than One Direct Deposit |
| You may have up to four active direct deposits at any given time. Do keep in mind that each Direct Deposit you add will need to go through a prenotification process. If you already have one or more direct deposits, your Direct Deposit screen will look like this: |
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| When you click on Add, you will be asked to again agree to the Direct Deposit Authorization statement. Once you indicate your agreement, you will be given an Add Record Window. In addition to the information required on your first direct deposit, this window also asks you to indicate the amount you want deposited in this account, or the percentage of your net pay you want deposited in this account. No dollar signs or percent signs are needed, so for example check the percent box and enter 45 to deposit forty five percent of your net pay or check the amount box and enter 45 to deposit forty five dollars. |
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| Once you enter the required information, including the amount or percentage of net pay you want deposited in your second account, click on Add. Your Direct Deposit screen will look something like this: |
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Please notice the following:
- The Michigan State University - FCU account is now in Order 1. The default account is always in the last Order because it is where 100% of any remaining net pay will be deposited.
- There is a blue change link for the MSU - FCU account, which can be used to change the amount of this deposit (or to change the percentage). Changes in amount or percent do not require prenotification; the very next payroll processed by the state after the change will reflect the change.
- There is a Select New Default button appearing after the Add button. If you have two or more direct deposits, you may designate any of the active deposits as your default. When changing a default designation, you will be prompted to select a deposit amount or percent for the prior default account.
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Please keep the following multiple account tips in mind:
- If you have four direct deposits, you can only establish a new direct deposit after you revoke an existing direct deposit.
- Before you can revoke a default account, you must first designate a new default account.
- The system does not process direct deposits outside of the United States.
- The system pays special attention to account order.
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Account Order: Net pay is deposited in the account order you designate. If there isn't enough net pay to honor a designated amount or percent, that account is skipped completely. In any case, 100% of whatever is left will be deposited in the last (default) account.
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| As an example, an employee with three direct deposits usually nets $900 a pay period. $600 is designated for the 1st account, 25% is designated for the 2nd account, and the rest goes to the default account. Usually, that's $600 in the 1st account, $225 in the 2nd account, and $75 in the default account. Last pay period, however, the employee matched a 401k contribution and only had $599 in net pay. Nothing is deposited in the 1st account because there isn't enough net pay to deposit $600. The second account gets $149.75 (i.e., 25% of $599) and $449.25 goes to the default account. See the chart below, which also shows a performance bonus pay period. |
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