Mandatory Direct Deposit

CU's mandatory direct deposit policy is based upon an Employee Services procedural statement that dictates the processes and procedures used to administer payroll. It is intended to assist in defining the requirements for direct deposit.

Terms Used in this Statement

  • Italicized terms are defined in the  Administrative Policy Statement Dictionary
  • Terms specific to this procedural statement are defined here:
    • Direct Deposit: Funds that are deposited, electronically, directly into an employee’s bank account(s).

Procedural Statement

A.   All employees paid by the university’s payroll system are required to have direct deposit for their payroll, unless they are otherwise exempted (see allowable exceptions below).

Direct deposit provides a number of benefits, such as: reduced chance of a lost warrant, reduced potential for theft or forgery, and funds are deposited into an employee’s account(s) on payday.

There are certain circumstances for which salary payment by paper warrant, rather than direct deposit, is necessary or suitable.

B. All new employees must sign up for direct deposit or, within the first 60 days of employment, provide an Authorization for Direct Deposit Form. Any employee failing to sign up for direct deposit within their first 60 days of employment will be required to pick up his/her paper warrant from Employee Services, where they may complete the appropriate direct deposit paperwork or online request.

C. Employees can sign up for direct deposit, online, through their campus portal.

D.  Employee direct deposit information will also be used for all future travel/expense reimbursements.

E. This procedural statement will be reviewed as new payment options become available.

Exceptions

A. Business exemption

The following circumstances constitute an exemption to the direct deposit rule and may be applied as though a specific exemption had been granted by the campus or university controller:

1. The first payroll payment to an employee may be by paper warrant.

2. An employee's last payroll payment may be by paper warrant, to facilitate the checkout process and to insure that university property is returned prior to departure. The preferred method will still be by direct deposit.

3. An employee hired for less than sixty (60) days may be paid by paper warrant. If employment is extended, direct deposit is then required, unless a personal exemption (see below) is granted.

B. Personal exemption

Employees not covered under a business exemption may request a hardship exemption on the Application for Exemption from Payroll Direct Deposit form.  The possible exemptions for direct deposit include the documented inability of the employee to obtain a bank account or the employee is unable to withdraw funds because he or she does not live or work near a bank.

For campus employees, the exemption must be approved by the supervisor and campus controller; for system administration employees, the exemption must be approved by the supervisor and the University of Colorado controller.

University employees who have questions or need assistance with these guidelines may contact Employee Services at 303-860-4200, option 2, or email employeeservices@cu.edu.