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NC Direct Deposit is late... North Carolina

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  • NC Direct Deposit is late... North Carolina

    My husband's employer has just begun doing direct deposit. He gets paid on the 15th and 30th each month. When he was getting a paper check, if the 15th fell on Saturday, he received his check on Friday; if it fell on Sunday, he received his check on Monday.

    Now, the deposit shows up in our account as "available balance" on the payday, but it does not "post" until the following day. We've only been doing it one month, and now this month, the 15th falls on Sunday. I would have expected the payroll to hit on Monday (although I would rather it be posted), but we're being told that she will not put it in until Monday and it will be available Tuesday. We were offered a printed check, but neither of us will be available to deposit it before 4pm (the cutoff for it to post that day).

    I've search all over the net for the laws on this, but cannot find anything... anyone know what the guidelines are? Thanks in advance!

  • #2
    Ultimately this is not in the control of your employer. Once your employer "releases" its ACH file to bank, bank procedures take precedent about posting to respective accounts. This is your personal bank that I'm referring to (not necessarily the bank that payroll is drawn against).

    Your employer has met its responsibility of "constructive receipt" by releasing the funds to your bank for posting. It sounds that the problem you are experiencing has to do with the bank and its posting policies.

    http://www.ssa.gov/OP_Home/handbook/...book-2133.html

    Your recourse is to cancel direct deposit or change banks. I'd suggest having a conversation with your bank's ACH department. A rep should be able to review its posting policies. Generally when a bank receives an ACH file, the file includes a post date. If that post date is not a banking date, you should ask the rep how does your bank handle these situations. These answers should help you decide on what future action if any you'd wish to take.

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    • #3
      How is it not in control of the emloyer?

      If they wait until the paydate to make the deposit? Don't they have to make the funds available on the paydate, in essence setting up the ACH a day or two ahead of time?
      Last edited by oceannative; 10-13-2006, 06:09 PM. Reason: add additional info

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      • #4
        General protocol is that the employer would release the ACH file at least 48 to 72 hours prior to check date. Some banks may have stricter rules. If the employer is releasing the ACH file on check date, my best guess is that direct deposit will not happen timely. This is because the bank will not have enough time to process the file by the post date.

        "Constructive receipt" does not specifically mean that you have access to your money on pay date. It means that monies were made available. In the example of direct deposit, the funds are made available to the bank if the bank receives on/before pay date. It's unfortunate that the banks may not be able to credit your account timely or make funds available timely. This in itself would not be unlawful.

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        • #5
          The window for ACH file transmission to the processing bank is generally 48 hours. NACHA rules provide that, if the file transmission meets the window, and the settlement date on the file (there must be one) is on a nonbanking day, the deposits should post on the previous banking day (not the subsequent one). However, if the employer is not submitting the file until payday, or after, you can see that the receiving bank could not possibly post it on payday. I'm not as positive as robb71 that this is your bank's problem, but they are definitely a place to start asking.
          I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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          • #6
            Thanks, I'll check it out...where can I find...?

            Where can I find these guidelines you refer to about the previous banking day? I bank with Wachovia, so I'll start there. Again, thank you!

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            • #7
              What if my pay date falls on a holiday?
              If your pay date falls on a holiday or other dates when financial institutions are closed, your money will be available on the day before your scheduled pay date.
              http://www.electronicpayments.org/in...aq.php#holiday
              I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

              Comment

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