Proposal To Require Direct Deposit For State Employee Paychecks Moves Forward
June 15, 2012
TRENTON – An Assembly committee released legislation that would save more than a half-million dollars per year by modernizing the state’s payroll system was released Thursday by an Assembly panel.
The bill (A-720), sponsored by Assembly Democrats Ruben J. Ramos Jr., Matthew W. Milam, Connie Wagner and Annette Quijano, requires direct deposit for all state employee compensation on and after July 1, 2014, and allows counties to opt for mandatory direct deposit for all county employee compensation on or after July 1, 2014.
The bill eliminates administrative costs associated with mailing pay stubs to employees by requiring that all pay information now be available online via the employee’s assigned e-mail address.
“It’s the 21st century and it’s time the state of New Jersey began acting like it,” said Ramos (D-Hudson). “There’s no excuse as to why the state insists on physically mailing pay stubs that are sealed in an envelope, printed on paper, stamped and labeled. This is a recurring administrative cost that the state incurs for thousands of employees.”
Additionally, the bill requires that all employee W-2 IRS forms be available online for employee access, also eliminating the need for the state to print and mail these forms.
“Employees receiving direct deposit that have an e-mail account with the state should simply be able to access their pay and tax information in the office or at home,” said Milam (D-Atlantic/Cape May/Cumberland). “Let’s save money by moving past the outdated methods of the past.”
Under this roll-out, the treasurer will also have the authority to provide exemptions and waivers for certain employees and departments that cannot accommodate the technological requirements. By fiscal year 2015, the plan could save an estimated $540,000 per year.
“Numerous banks offer free checking with direct deposit,” said Wagner (D-Bergen/Passaic) “This is a commonsense, cost saving measure.”
“Any plan that can save a half-million dollars per year without disrupting state services is worth doing,” said Quijano (D-Union). “With finding costs savings so vital, this is a must.”
The bill was released by the Assembly State Government Committee.
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