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TOPIC: Electronic Payments QuestionsOFFICE: Department of AdministrationSTATE: MTDATE: 11/10/2014QUESTION / ISSUE:We have an agency that is building a new computer system. The payments from their system will continue to interface into the state’s central accounting system. This agency is exploring whether they should allow people the ability to change their direct deposit (ACH) information on-line. 1)Do you allow members/customers to sign up for direct deposit using a self-service portal?2)Do you require any documentation to be mailed in?3)Do you allow them to make changes to their account/routing numbers electronically over a member self-service portal?4)If so, what edits do you have in place to ensure the account and routing numbers are accurate?5)Do you perform a “prenote” to make sure the information is accurate?StateCommentsAlaskaWe are moving to an ERP that is scheduled to go live in July 2015. So I can tell you what we are planning to do, but not how it is actually working out.We are planning on allowing this.NoWe are going to try to prevent this and require them to mail or fax hardcopy documents.Routing numbers are selected from a prepopulated list. There are no edits to ensure the account numbers are accurate.Yes, we do prenotes.ColoradoAs of today, Colorado does not allow vendors/customers to use the self-service portal to sign up for direct deposit.We are planning to add this enhancement sometime in mid to late 2015, and we would be interested in your experience if Montana implements before Colorado.DelawareResponse 1When the vendor goes to the online W-9 and checks yes to receive payments by direct deposit the information blocks appear for entry.This process interfaces with the system.? We also do a TIN check with the IRS.? Any exceptions are worked through the vendor team.YesNoYes (see above)Prenote process is performed to ensure that information is accurate. Process can take up to one week. If information is incorrect, state accountants will reach out to the vendor to resolve.YesResponse 2Yes, the ACH information is entered on-line on our W-9 form. accounting. click on Delaware Substitute W-9 link to see our form. No, we do not require anything to be mailed. Yes, the vendors can change anything on their vendor record by submitting a new Substitute W-9 on-line. We prenote all original as well as changes to the banking information. Yes, all new ACH information, as well as any changes to ACH information is prenoted. FloridaFlorida does not allow vendors to sign up for direct deposit via a self-service portal. The state does allow employees and retirees to use online portals.Florida currently requires vendors and employee/retirees not using the online portal to provide a form. Employee/retirees are also required to attach a voided blank check. In addition we currently have a rule change in process that would require a copy of a valid driver’s license or government issued ID to be included for employee/retirees.Florida allows employees/retirees to make changes via the self-service portal.When changes are made to the account information via an online portal a prenote is sent to the bank.Florida does prenotes for starts and changes for all employee/retirees and only starts for vendors.GeorgiaIn Georgia, for entities using the state PeopleSoft system supported by our office (roughly 85 entities), we allow direct deposit enrollment in HCM employee self-service for employees only. We do not allow direct deposit sign up directly by our vendors/customers in FSCM. To answer your questions specifically:Employees can enroll in direct deposit (and make changes) through HCM employee self- service.We do not require any documentation to be mailed in.Yes – they are allowed to make changes to their direct deposit information (routing number(s), account number(s), account allocation(s), etc.) We actually encourage all employees to handle this information themselves through employee self-service, as we do not want to be responsible for physical paperwork with bank account information on it in our payroll offices.N/AAny time a new bank account is added, a pre-notification process is confirmed with the appropriate banking institutions. The pre-notification process is done semi-monthly (that is the standard pay period in the state of Georgia).IdahoIdaho does not have or allow this capability for statewide vendors. The Idaho Tax Commission does allow the self-service for direct deposit of tax refunds.Idaho Tax Commission does not require documentation. Statewide vendors are required to complete the Combined W-9/Direct Deposit form and attach some needed documentation.No for statewide vendors.Direct deposit for statewide and Tax Commission validate against an ABA table in our accounting system. That table is updated at the end of each quarter with the most current listing of valid ABA numbers available directly from Federal Reserve Financial Services. Here is the website: process is used on statewide vendors. It is not used by Idaho Tax Commission for tax refunds.IowaNo. A form must be completed, signed and mailed to the central office. Yes. This form contains the old account information as well as the new account info. No. This is controlled centrally. Prenote is always performed on new accounts or changes to an account.LouisianaNoEFT enrollment form, copy of cancelled check or deposit slip or letter from the financial institution can be mailed, faxed, or emailed.NoN/ANoNote: The state of Louisiana is moving to a new accounting system. Part of the new accounting system will be a vendor self-service portal that will allow the vendor to update their EFT information. However, this will not be done in the next two years.MichiganYesNo, we do not require the documentation to be mailed in. But, vendors/payees can choose to submit forms and the state will enter the banking information on their record so they can receive EFT payments.YesData must be entered twice to ensure accuracy for both routing numbers and banking numbers. Routing numbers are validated in real time against to ensure accuracy.Yes we use the “prenote” process to validate banking information.MinnesotaYes, customers can sign up for direct deposit during initial registration. This is the only time they have access to online banking screens.NoNo, our portal has been in existence for about three years. This was a big change to our business process and, at the time, we felt the security to allow vendors to make bank changes online would prohibit us from delivering our product timely.The online banking screen requires the vendor to enter account and routing numbers twice. We have a check to validate routing numbers, and the registration errors out if not validated. Our vendor team will make the correction if the vendor okays the change.Yes, we have a 10 day prenote. We send a zero dollar transaction to the bank. When necessary, we will manually confirm prenotes early.NebraskaNo N/A NoN/AYesNorth CarolinaWe currently use a manual process for accounting system vendor payments. For H/R payroll, the initial Main Bank has to be done at the agency for a new hire. After that the employee can add “Other Bank” or change the Main Bank on their employee self-service access.For accounting system vendor payments, either a blank check or a bank letter is required. For H/R payroll, if the employee does it on employee self-service, there is no documentation required. When the agency does it, the employee has to complete a form and provide a blank check.For accounting system vendor payments, we currently use a manual process. For H/R payroll, employees can change their account using employee self-service. For accounting system vendor payments, this is not applicable since we use a manual process however the Federal Reserve keeps the Federal Reserve Bank Transit-Routing Directory updated at the following link: . For H/R payroll, the payroll department keeps a table of the valid bank account routing numbers. If the employee enters a routing number that is not on the table, they get an error message. For our H/R payroll and accounting system vendor payments, we do not prenote.OklahomaYes our vendors are directed to an online Financial Registration site. Vendor receives an email providing instructions for EFT registration when the email field is updated in the default address of the vendor record. Email will resend every six months until banking is added. Online registration process only supports the addition of one bank account and the information may not be altered once submitted. Additional bank accounts must be added manually by Office of State Treasurer. An EFT Bank Change Form must be submitted as part of the vendor registration process. The form is faxed or mailed by vendor’s financial institution to the OK Office of State Treasurer. The EFT registration will remain in Approved Pending Banking Status until this form is received. Banking is not interfaced to vendor account until Approved Status. No change requests must be received in the form of an authorized bank letter or a new EFT Bank Change Request form. This form is controlled and may be accessed only via the online registration. We are contemplating a change to this process currently since our online system also only allows one bank account to be added and no changes. Yes prenote $.01 deposit is made to account provided via the online registration portal only. Prenote is not applicable for bank information added manually to the PeopleSoft vendor file fields. Attached is a copy of our workflow process for your review.OregonWe have our form on the state website where it can be completed, or printed and completed by hand. We do not allow a vendor to enter any of the information directly into our financial system.Yes, we require the original request to be returned by mail and it must contain an original signature by the vendor and their financial institution.We do not allow vendors to make their own changes to their direct deposit information. The vendor would complete the same form only marking it as a change verses new. The form would need to be signed by the same person(s) as signed the original new request. If the signer has changed, then we would require a copy of meeting minutes or a signed statement on company letterhead explaining why a different signer is listed (i.e., change in staffing).N/AYes, we prenote to check for accuracy.PennsylvaniaWe basically have two types of vendors:? Procurement vendors that register to have the ability to bid on state related contracts and Non-Procurement for everything else. Procurement vendors use a self-service portal. The Non-Procurement data is managed through our Vendor Data Management Unit and we must be contacted for that. Yes. For procurement vendors, there is a self-service portal that, after registering and establishing an Administrative User, is self-managed. The self-managed vendors are only permitted one (1) ACH bank account. The system will not permit WIRE banking.Not for procurement vendors registered with the self-managed system allowing one (1) ACH bank account. The non-procurement vendors must fill out and submit the Pennsylvania Electronic Payment Program (PEPP) form (see attached) and provide either a “voided” check or a letter from the banking institution verifying the information.Yes. Again for procurement vendors, there is a self-service portal that, after registering and establishing an Administrative User, is self-managed.All new or changed banking information is run through a prenote system.Yes. Same as #4. Rhode IslandNo. We have a self-service portal, but we shut off the ability to allow them to change their own banking information. We felt the individuals who have access to the portal may not be the same individuals who have the authority to make banking decisions and felt we should still require written authorization.We require a hard copy signed form and original voided check, savings account deposit slip or letter from the bank (if no checks are used).No (see answer to #1).N/ANoTexasFiscal Management administers the state’s direct deposit program for credit payments of state employee payroll and travel reimbursements, pension payments for three state retirement systems and vendor payments.One of the statewide accounting systems, Centralized Accounting and Payroll/Personnel System (CAPPS), maintains two modules for state agencies that utilize this system - payrolls and financials. Only the payroll module provides a self-service portal for state employee direct deposit authorizations; financials module currently does not. CAPPS employee direct deposit information is then submitted to the state payee database, Texas Identification Number System (TINS). Agencies that do not utilize CAPPS for payroll submit their employee direct deposit information to other statewide payroll systems that upload the information to TINS. Forms are required for vendor direct deposit information, which is submitted to TINS by state agencies. Agencies maintain their employees’ and vendors’ authorization forms when forms are required. The accounting systems access TINS for the direct deposit information during payment generation.CAPPS payroll portal – No, unless the IAT (International ACH Transaction) option is selected. In that case, direct deposit is frozen; and a message is generated that advises the user to contact his/her payroll office.Note: Currently, the Comptroller’s office does not accept requests for IAT payments from any of the statewide systems.CAPPS payroll portal – Yes. If IAT is selected, that selection must first be cleared by the user’s payroll office.CAPPS payroll portal – Edits include:The routing transit number must be 9 digits and is validated against a bank file that is obtained from the contracted ODFI (originating depository financial institution).If the routing transmit number is blank or not found on the bank file, the transaction is rejected and a fatal error is issued.If the account number is blank or contains an asterisk (*),? a period (.) or a tilde (~), the transaction is rejected and a fatal error message is issued.Although the NACHA rules no longer require prenotification, the comptroller’s office prenotes initial setups?and changes of direct deposit information.WashingtonNo. We were working on one and put the project on hold 2+ years ago. My understanding is that we were going to allow them to make changes. Yes, we were going to run prenotes. We run prenotes now on records we set up on paperwork sent in by payees. ................
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