Invalid Routing Number/Invalid Account Number/Closed Account

The State’s Financial Institution, currently M&T Bank, submits to the State Treasurers Office a Returned Item (RI) report on a daily basis. The Returned Item (RI) report details any transactions that are returned to the State due to issues such as an invalid routing number or invalid account number. The State Treasurer's Office will forward the Returned Item (RI) report to the Central Payroll Bureau for processing. Central Payroll must cancel an employee's direct deposit in this event and notify the employee by form letter to submit new information for direct deposit. Prior to the employee resubmitting their new information, a paper check will continue to be directly mailed to the employee’s home address.

Central Payroll will receive additional information on failed and recovered direct deposit funds. In the event that the employee’s direct deposit funds were not able to be deposited, the funds may be returned to the State Treasurer’s Office within 3 business days. Once the funds have been returned, Central Payroll will cancel the direct deposit information and reissue a new paper payroll check. This check, along with a form letter detailing the reason for the failure, is then mailed directly to the employee’s agency, who will handle getting the paycheck to the employee. In the event of a Direct Deposit failure, the employee’s receipt of funds could be delayed 6-7 business days or more depending on the situation.

In the event that an employee supplies Central Payroll with an incorrect routing and/or account number, but the number is still valid (i.e. the incorrect account number belongs to another person at the same bank), the funds most likely will be deposited into a bank account belonging to someone else and may not be recoverable. The Law only allows for attempted recovery within 5 business days from the pay date, therefore any request to recover funds outside of the 5 business day limitation may be requested, but is often unsuccessful.

Important Note

Every employee is responsible for ensuring the accuracy of the bank information they submit on their direct deposit forms. Employees should always verify receipt of their funds to their proper bank account on payday by 10am and are directed to immediately contact their employing Agency and/or Central Payroll if there are any issues.