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.