Kent City Community Schools
Administrative Guidelines
 

6510C - DIRECT DEPOSIT/PAYROLL DEBIT CARD

The following procedures shall be used when implementing direct deposit and payroll debit cards for payment of wages to conform to Board of Education policy and meet the requirements of the State.

 

A.

The employee will have the option to receive wages either by direct deposit to the employee's account at a financial institution or through a payroll debit card. Employees will be provided Form 6510C F1 to make their election.

   
 

B.

Failure to return the form within thirty (30) days with the account information necessary to implement direct deposit will be presumed to indicate consent to receiving wages through a payroll debit card. However, if an employee is currently paid by direct deposit, the method of payment shall not be changed to payroll debit card without written consent of the employee.

   
 

C.

Written disclosure of all of the following concerning the payroll debit card shall be made with presentation of Form 6510C F1.

   
 

1.

The terms and conditions for use, including an itemized list of any and all fees.

   
 

2.

The methods for accessing wages without charge.

   
 

3.

A statement that, if the payroll debit card is used outside of the specified network of automatic teller machines, both the payroll card issuer and the operator of the automatic teller machine may impose charges.

   
 

4.

The methods to obtain free balance inquiries.

   
 

5.

The employee's right to elect to change the method of receiving wages at any time.

   
 

6.

That the payroll debit card does not provide access to a savings or checking account.

     
 

D.

The District shall take no longer than one (1) pay period to implement the change after it receives a request to change to or from direct deposit or payroll debit card, provided it receives any information necessary to implement the request.

   
 

E.

The payroll debit card must have all of the following characteristics:

   
 

1.

Entitles the employee to make at least one (1) withdrawal or transfer without charge each pay period, but not more frequently than once per week, for any amount the employee elects up to the balance accessible through the card.

   
 

2.

Allows no changes in fees or terms of service unless the employee has received a written notice at least twenty-one (21) days in advance of the date that the changes take effect identifying the changes.

   
 

3.

Provides a method for the employee to make an unlimited number of balance inquiries without charge, either electronically or by telephone.

   
 

4.

Is not linked to any form of credit, including a loan against future pay or a cash advance on future pay.

   
 

F.

"Payroll debit card" must be a stored-value card issued by a federally insured financial institution that provides an employee with immediate access for withdrawal or transfer of his/her wages through a network of automatic teller machines. The term includes a card commonly known as a payroll debit card, payroll card, and paycard. The financial institution must lawfully maintain a principal office or branch office located in the State of Michigan.

M.C.L. 408.476

© Neola 2012