Bursar’s office mandates direct deposit
- Aug. 19, 2010
- 1 Comment
Two separate policies require students and University of Kansas employees to sign up for direct deposit to receive refunds and paychecks electronically.
According to an announcement that the Bursar’s Office posted online, the new refund policy allows students to receive refunds faster and more safely than they would if the University distributed them as checks.
The second policy is a state mandate requiring direct deposited paychecks for all state employees, which includes University employees. The employees have until Oct. 1 to comply with the new policy.
“The advantage to the University is better business efficiencies,” said Katrina Yoakum, comptroller for the University. “We spend a lot of time following up with checks that are not picked up.”
Though the state’s deadline for direct deposit enrollment is Oct. 1, the goal of the Bursars Office is to have 100 percent enrollment by the beginning of September. Yoakum said more than 95 percent of University employees have already signed up.
“We’ve been trying for years to encourage staff and employees to utilize direct deposit,” said Diane Goddard, vice provost for administration and finance. “We ramped it up to the 80 percent level pretty quickly. Getting from 80 to 95 percent has been more difficult.”
Employees who do not have an account at a financial institution will receive a Skylight Financial account, an ATM-based bank, and a Skylight pay card. Employees must sign up for this service at the Payroll Office.
Kelsey Smith, a junior from Council Grove, signed up for direct deposit when she started work for KU Libraries three years ago. She said she’d recommend other students to sign up for it as well.
“I think it’s easier that way,” Smith said. “You don’t have to worry about getting a new check deposited in the bank.”
Though University officials have recommended refund direct deposit for at least five years, they were unable to mandate the policy until a federal law changed. The policy has been in effect since last November.
Yoakum said direct deposited refunds will save the University $10,000 annually.
The Bursar’s Office most recently notified students of the refund policy in an e-mail sent Aug. 2. The e-mail included instructions explaining how to set up direct deposit online or by completing a direct deposit authorization form.
“Having everyone on direct deposit means there are fewer people who handle that transaction,” Goddard said. “It’s just more efficient and much more accurate.”
It’s also much quicker. Goddard said students signed up for direct deposit will receive refunds at least a day faster than they would otherwise.
Edited by David Cawthon