Tired of waiting in line to get your paycheck … and then waiting in another line to cash or deposit it?
Tired of relying on the U.S. Postal Service for timely delivery of your paycheck?
Help is here for everyone, thanks to the Payroll Office’s development of a new direct deposit system that uses the Michigan Automated Clearing House Association (MACHA) network. MACHA allows the University to direct-deposit paychecks to any of the 14,000 participating financial institutions in the country. Prior to MACHA participation, only 23 financial institutions were part of the
U-M’s system.
Those who choose to participate will have their paychecks deposited directly into their checking or savings account, with a statement of earnings (paystub) mailed to them for their records.
There are several advantages to direct deposit:
—Deposits are timely and confidential. Money is electronically deposited on payday.
—Direct deposit is not subject to delays in the mail and eliminates the possibility of a lost check.
—Many financial institutions offer special incentives to customers who use direct deposit. These may include free regular checking/savings accounts, free initial order on checks or reduced loan rates.
Arranging for direct deposit is easy. Simply open a checking or savings account at an MACHA participating institution and then complete and return a Direct Deposit Authorization Form available from the Payroll Office.
MACHA requires two things:
—The account number at the financial institution must be provided, as well as a voided check/draft if the deposit is to a checking account.
—There is a 15-day waiting period between receipt of the authorization form by the Payroll Office and the effective date of the direct deposit. Those paid during the 15-day waiting period will receive paychecks via U.S. mail at the address indicated on the authorization form.
Twenty-two of the financial institutions already participating in direct deposit will provide the Payroll Office with account number information for U-M staff who already have their checks deposited. Only those with accounts at Michigan National Bank must provide account number information by completing a new authorization form, which has been sent to them.
Questions? Call the Payroll Office, 764-8250.
