What’s a credit union deduction?
A credit union deduction is a method of splitting up your pay and routing those portions to unique credit union accounts. This is a popular method of routing your pay within a credit union if, for example, you’re paying off your credit union car loan or putting money aside for a holiday savings account. Sometimes people also refer to this as a “partial credit union”.
Please note that a credit union deduction is not the same thing as a direct deposit, which moves your paycheck (also known as net wages) to a financial institution like a bank or a credit union. There are no changes occurring with direct deposits.
What’s a bank assignment?
The term “bank assignment” used in the memo means a direct deposit of your pay (also known as net wages). A direct deposit moves your pay to a financial institution like a bank or credit union, and this process is not affected by the October 25, 2017, memo. You may continue to set up primary bank assignments/direct deposits for your total net wages.
As of October 25, 2017, the state is temporarily not accepting new
credit union deductions.
This does not affect your ability to:
- set up new direct deposits;
- cancel your direct deposits;
- cancel your credit union deduction; or
- change your credit union deduction amounts.
In 2018, you will be notified that a new online portal called the Online Payroll Employee Self Service will be going online.
When the new Online Payroll Employee Self Service opens up to employees, you will be able to:
- manage your direct deposit and credit union deductions;
- access your pay statements;
- add/change your payroll address;
- update your federal and state tax forms;
- maintain your emergency contact information.
I'm not a new employee. How does this affect me?
There is no effect to you unless you wish to set up a new credit union deduction, in which case you need to wait to set that up when the new Online Payroll Employee Self Service is launched. You will receive a notification when that’s available to you.
I get a paper check today. Does this affect my ability to set up direct deposits at this time?
No, you may still set up primary direct deposits/bank assignments at any time.
Why is this happening?
The State of Hawaii is undergoing a modernization of its ailing forty-year-old payroll system. In order for our new system to go live in 2018, it’s important to temporarily stop new credit union deductions from being set up so that we can move your existing deposit and deduction information into the new system in a timely fashion.
If I have credit union deductions already set up, are those being discontinued?
No. If you have existing credit union deductions, those will continue uninterrupted. This only pertains to requests for new credit union deductions.
Is the State Accounting Form D-60 going away?
The D-60 is still being used for credit union deduction changes – for example, changes in amounts, or stopping the deductions (i.e., cancellations) – and well as for setting up direct deposits for now. Starting in 2018, employees will have the ability to manage new credit union deductions as well as all of their direct deposit set-up and cancellation activities via a new website called “Online Payroll Employee Self Service”.