POL-U5341.03 Distributing Payments to Payees

Dates and Approval

Effective Date:

December 11, 2006

Revised Date:

December 3, 2024

Approval Date:

December 3, 2024

Approved by:

President Sabah Randhawa

Who does this policy apply to?

This policy applies to the distribution of payments generated by the University to payees for both payroll and non-payroll payments regardless of payment method.

Overview

The purpose of this policy is to serve as a basis for processing and recording payroll and non-payroll payments to ensure the University:

  • Maintains sufficient internal controls and protection of financial resources,
  • Minimizes the cost of making disbursements by using the most cost-effective means available, and
  • Optimizes cash management.

Definitions

Direct Deposit

Electronic funds transfer of payments from the University’s bank account to a participating payee’s bank account.

Non-payroll Payments

Non-payroll payments include, but are not limited to, payments to vendors and independent contractors, financial aid refunds, and employee reimbursements, travel advances and refunds.

Payee

The person who receives a payment from the University including, but not limited to, employees, vendors, independent contractors, and students.

Payroll Payments

Refers to payments issued to an employee through the payroll system including emergency payments and payment reissues.

Policy Statements

1. Treasury Services Ensures Controls over the Distribution of Payments

The Director of Student Business Office and Treasury is responsible for:

  1. Implementing sufficient internal controls to safeguard funds against loss, 
  2. Maintaining compliance with state rules for payment methods, and
  3. Ensuring equitable access to payments owed.

2. Payroll Payments Must be Distributed Electronically

Consistent with state laws and operational goals, payroll payments must be distributed electronically; paper paychecks are not permitted. Employees must select to receive payroll payments either by direct deposit into their bank account or payroll card.

Exceptions: Paper payroll payments will be provided if:

  1. An employee resides and banks in Canada due to international fees imposed on the employee and the inability to process direct deposits through foreign banks,
     
  2. A new hire does not enroll in the direct deposit payment method before the end of their first pay period. In this event, they will receive a paper check for their first payroll payment and then be issued a payroll card for future pay periods.

3. Non-Payroll Payments May be Distributed Electronically or Manually

Vendors and students are strongly encouraged to sign up for direct deposit for payment rather than receiving a paper check via postal service.

Employees are strongly encouraged to enroll in the same payment method they use to receive payroll payment (e.g, direct deposit or payroll card). This will increase payment efficiency, prevent delayed payment (e.g, lost checks) and the reliability of payment under unusual circumstances (e.g, natural catastrophe, severe weather).

Payees and University departments requesting non-payroll payments must follow the appropriate written procedures.

Payees are to contact Treasury Services if experiencing barriers to accessing funds through current payment methods.

4. Payees Responsible for Keeping Personal Mailing Address and Bank Information Current

Employees and students are responsible for updating their bank account (if enrolled in direct deposit) and their mailing address information when necessary. Both updates are to be done through Web4U.

External parties may contact Accounting Services for information on how to update their banking and mailing information.

Failure to maintain updated information may cause a delay in payment.

5. Changes to Bank Accounts will be Monitored

Employees will be notified by Payroll Services when changes are made to their bank account information to reduce fraudulent activity.

Financial Services will ensure processes for vendors to securely update their account information.

6. Employees Must Immediately Report Payroll Overpayments

The University is required by law to recover any overpayments made to employees. When an employee (e.g., a Payroll Services employee, or the employee that received the overpayment) determines that a payroll overpayment has occurred, they are to immediately report it to the head of Payroll Services.

The head of Payroll Services is responsible for promptly implementing the standards and procedure for Recovering Payroll Overpayment (STN-U5341.03A) in compliance with state rules and Collective Bargaining Agreements, as soon as they become aware of an overpayment.

7. Payments Owed to Deceased Payees to be Paid to Court Appointed Personal Representative

The amount owed to a deceased payee includes amounts owed for labor performed by the deceased and/or expense reimbursements or allowances. If the payee is a student, the payment will be facilitated through Student Affairs Division.

Exception: If no personal representative has been appointed by a court on behalf of the deceased’s estate, then the University will ensure compliance with SAAM 25.70.30 to ensure proper distribution of amounts due to a deceased payee.

8. Accounting Services Will Send Uncashed Check Payments to the State Unclaimed Property Division

Payments that are outstanding (unclaimed by the payee) in the University’s bank account after one fiscal year from the issue date will be reported and sent to the State’s Unclaimed Property division within the State Department of Revenue.

Checks issued to California addresses must be reported directly to the State of California. Checks reported with addresses to other States are passed on to those states by the Washington State Department of Revenue.

9. Lost Checks Require the Payee to Sign an Affidavit

Payees who need a non-payroll check reissued are to contact Accounts Payable to complete an affidavit.

Payees who need a payroll check reissued must sign and submit the Check Replacement Form.

Employees who lose a payroll card are to follow instructions posted on WWU’s Treasury Services webpage.

Policy Information

Authority:

Display all authorities

See Also:

Display procedures, standards, and forms

Related documents