Academic-Year Paycheck Options

Cash Flow Issues

Many of our employees already effectively address the management of their paychecks throughout the year, but others have asked for options to assist them. Here’s some information on how you can use the Direct Deposit options within HRS to put aside some of your monthly paycheck to draw on during the months you are not being paid. Available resources include:

Cash Flow Questions and Answers

I am only paid nine months of the year, which makes budgeting an issue. What can I do?
While you do not have the option to receive pay for twelve months, if you are a nine-month employee, you can utilize a number of tools to help with budgeting.
Do I have to change what I am currently doing?
Absolutely not! You can continue to do what works best for you and your situation.

Direct Deposit

How can Direct Deposit help?

You have the option to have your pay split into up to three separate accounts, at the same or different financial institutions.

All money must end up in a direct deposit account, no partial paychecks.

Depending upon how your direct deposit is created, any money not allocated will automatically be placed into your primary account.

Example 1:

  • Take home $75,000/year ($8333/month for 9 month or $6250/month for 12 months)
    • $6250 (75%) each month in account ‘A’
    • All remaining money each month in account ‘B’. ($2083 (25%) plus any additional money earned)
  • In May, you transfer the money from account ‘B’ into account ‘A’, through your financial institution, for summer budgeting

Example 2:

  • Take home $67,000/year ($7444/month for 9 months or $5583/month for 12 months)
    • $500/month in account ‘A’
    • 10%/month in account ‘B’ ($694.40)
    • The remaining money each month in account ‘C’ ($6,249.60 plus any additional money earned)
  • In May, you transfer the money from account ‘B’ into account ‘A’, through your financial institution, for summer budgeting
Does this change how money is taken out of my salary to prepay summer benefits?

No, using additional direct deposit options does not impact on how summer benefit prepay is handled. However, you may want to keep in mind how your take home pay is different those months, when setting up your direct deposit.

Example: You have a set dollar amount ($1000) allotted in account ‘A’ and the remaining amount in account ‘B’. If your April paycheck has less than $1000, the entire amount will go into account ‘A’ with no money going into account ‘B’ for bill paying. In this example, it may be better to take out a percentage rather than a set $ amount.

Who do I talk to about opening new accounts?
If you have any questions about creating additional accounts for direct deposit, please contact your financial institution directly.
What form do I use to set up Direct Deposit with my Campus Payroll Department?
Complete the Authorization for Direct Deposit of Payroll form and return it to your Human Resources Office. Contact information for each institution can be found here: Institution HR/Payroll Contacts.
Who do I talk to if I have additional questions about the Direct Deposit form?
If you have questions regarding authorizing additional direct deposit payments, please contact your institution's payroll office.
I already have direct deposit, do I need to submit a new form?
Only submit a new form if you want to make changes to the way your direct deposit is handled.

Jump to: Tax Issues

This document is for information purposes only and is not meant to provide financial or tax advice. Any changes you make are at your own risk.