Direct Deposit brings bookkeeping challenge

Direct Deposit brings bookkeeping challenge

By Rupert Howell
City workers won’t be getting longevity pay in next year’s paychecks and some city employees will receive a couple of days’ pay less on their pay stubs for a month or so as the city comes into Federal Reserve compliance needed when issuing direct deposit payrolls.
City Clerk Susan Berryhill Tuesday explained that the agreement with the bank through the Federal Reserve requires that payrolls be submitted 48 hours prior to payment, but that rule had not been strictly enforced.
She said 155 people receive Direct Deposit pay while 42 receive payroll checks. Police and fire department time cards are submitted the week prior to payroll but city works departments like street, gas and water are submitted the day prior to payroll.
The bottom line is that for anyone to receive Direct Deposit, the payrolls must be submitted 48 hours prior to payday (city employees are paid every two weeks) and whether the individuals receive regular checks or Direct Deposit does not matter.
The result is that employees would be a week behind with pay, as are the firemen and policeman currently.
To ease the strain of losing a week’s pay while the system is in transition, alderman voted to take one or two days each pay period until the five day difference is reached. The transition will begin with October pay checks.
Prior to the payday discussion aldermen voted to rescind a 1977 order to promote longevity with employees for the upcoming fiscal year.
The 1977 order allowed employees of more than three years to receive an additional amount of salary to reward those who remained on their jobs.
“I know that’s useful in retaining our policemen and firemen,” Autrey said later, noting that he along with the board wanted to upend the order for a year or two due to the municipality’s current financial situation.

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