State Employees Must Be Paid Through Direct Deposit Under New Law

TRENTON — Gov. Chris Christie signed a cost-cutting measure into law today requiring direct deposit for all state employee compensation starting July 1, 2014. This law also allows local government entities to opt for direct deposit for its workforce.

“Governments must get the most out of every public dollar,” said state Sen. Steve Oroho (R-Sussex, Warren, Morris), who sponsored the bill. “All local government entities should join in this overdue initiative to save New Jersey taxpayers millions of dollars a year in unnecessary costs.”

The new law, formerly S-2090, also provides that public employers must make any information concerning net pay, accompanying information and W-2 forms available to employees only via the Internet. The Office of Legislative Services projects this modification will yield an annual savings of around $250,000 for state government alone.

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