Why isn my Direct Deposit payment available the same day paper warrants are handed out?
• The issue with posting dates is driven by the collision of a State regulation and the nationwide system for Electronic Fund Transfer (Direct Deposit). The great majority of employers have a payroll system with a lag. Usually employees are paid every two weeks, but with a one to two week lag from the time they complete the work, until their payday. Our pay system is one of the rare ones with, for most employees, pay day equal to the last day of the pay period. Here’s where the problem comes in. There is a long-standing State regulation that says employees should not be given their pay until they have completed their work for the pay period (this intuitively makes sense). This is why typically departments pass out warrants in the afternoon on payday. Now we layer on the Direct Deposit program. “Posting” date is when the banks get the money and also when they are required to have it available to employees.
The issue with posting dates is driven by the collision of a State regulation and the nationwide system for Electronic Fund Transfer (Direct Deposit). The great majority of employers have a payroll system with a lag. Usually employees are paid every two weeks, but with a one to two week lag from the time they complete the work, until their payday. Our pay system is one of the rare ones with, for most employees, pay day is equal to the last day of the pay period. Here’s where the problem comes in. There is a long-standing State regulation that says employees should not be given their pay until they have completed their work for the pay period (this intuitively makes sense). This is why typically departments pass out warrants in the afternoon on payday. Now we layer on the Direct Deposit program. “Posting” date is when the banks get the money and also when they are required to have it available to employees. Although it varies, most financial institutions post early in the day on the pos
The issue with posting dates is driven by the collision of a State regulation and the nationwide system for Electronic Fund Transfer (Direct Deposit). The great majority of employers have a payroll system with a lag. Usually employees are paid every two weeks, but with a one to two week lag from the time they complete the work, until their payday. Our pay system is one of the rare ones with, for most employees, pay day equal to the last day of the pay period. Here’s where the problem comes in. There is a long-standing State regulation that says employees should not be given their pay until they have completed their work for the pay period (this intuitively makes sense). This is why typically departments pass out warrants in the afternoon on payday. Now we layer on the Direct Deposit program. “Posting” date is when the banks get the money and also when they are required to have it available to employees. Although it varies, most financial institutions post early in the day on the postin
Related Questions
- What do I need to do to get set up to receive payment via Direct Deposit (ACH or EFT) rather than paper check? Is there a fee for Direct Deposit?
- What do I need to do to get set up to receive payment via Direct Deposit (ACH or EFT) rather than paper check?
- Why isn my Direct Deposit payment available the same day paper warrants are handed out?
