Temporary Hold on Credit Union Deductions

Memorandum from Comptroller, Roderick K. Becker, Regarding New Automated Clearing House (ACH) Direct Deposit Process and the Discontinuation of Credit Union Deductions, dated October 25, 2017

Background

The above referenced memorandum announces a temporary hold on employee requests for credit union deductions to ensure the State of Hawaii can convert employees’ existing credit union deductions to the State’s new payroll system efficiently and correctly.  The new payroll system will be deployed in 2018.  In addition to the Frequently Asked Questions provided in the memo, the following questions and answers are provided below to assist employees and their Human Resource (HR) personnel.

What Employees Are Asking..

[learn_more caption=”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. [/learn_more] [learn_more caption=”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.[/learn_more] [learn_more caption=”What’s changing?”] 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 on-line portal called the Online Payroll Employee Self Service will be going on-line.

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; and
  • maintain your emergency contact information.[/learn_more]
[learn_more caption=”I’m not a new employee. How does this affect me?”] There is no affect 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. [/learn_more] [learn_more caption=”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. [/learn_more] [learn_more caption=”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.[/learn_more] [learn_more caption=”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.[/learn_more] [learn_more caption=”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”.

Here’s how the new Online Payroll Employee Self Service will look when it’s launched!

The new Online Payroll Employee Self Service will allow much greater flexibility for employees to manage their direct deposit and credit union deductions.  Those activities may be done with a State computer during work hours.

[/learn_more] [learn_more caption=”Can I change or cancel my credit union deduction amounts still?”] Yes, you can change the amount of your existing credit union deduction using the Form D-60, or cancel it if need be.  Contact your HR personnel for assistance with that process.[/learn_more] [learn_more caption=”Will any other types of deductions be impacted by this change?”] No.  This change only pertains to credit union deductions.  There is no impact to deductions such as medical, statutory dues, deferred compensation, Aloha United Way, or any other types of deductions.[/learn_more] [learn_more caption=”I’m a retiree. How does this affect me?”] This has no effect on retirees because ERS disbursements are issued separately from ERS and not from the State’s payroll system.[/learn_more] [learn_more caption=”I’m going to retire very soon. Is there anything I need to do?”] If you’re planning to retire before your agency launches the new payroll system, there’s nothing you need to do.  If you’re planning to retire afterwards, make sure to keep your direct deposit current when the new Online Payroll Employee Self Service is live![/learn_more]

 

Contacts for More Help

Please call (808) 586-8800 or email [email protected].  Office hours are Monday through Friday, 7:45am to 4:30pm HST, and your call or email will be answered within 2 business days.