Bill To Require Direct Deposit For State Employees Advances

TRENTON – Legislation that aims to save more than a half million dollars per year by modernizing the state’s payroll system continues to advance through the Legislature.

Assembly Democrats Ruben J. Ramos Jr., Matthew W. Milam, Connie Wagner and Annette Quijano sponsored to save more than a half-million dollars per year by modernizing the state’s payroll system continues advancing.

The bill (A-720) would require direct deposit for all state employee compensation on and after July 1, 2014, and allows counties, municipalities and school boards to opt for mandatory direct deposit for all employee compensation on or after July 1, 2014, except for seasonal and temporary employees.

The bill would eliminate 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.

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.

“Any plan that can save a half-million dollars per year without disrupting state services is worth doing,” said Assemblywoman Annette Quijano (D-Union). “With finding costs savings so vital, this is a must.”

The bill was approved 79-0 by the Assembly on June 25 and referred to the Senate State Government, Wagering, Tourism & Historic Preservation Committee.

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