When can paychecks be delivered to Employees?
The State requires the distribution of pay checks on the date of the check and not earlier. Check distribution after 6:00 p.m. on the evening before payday is permitted only for second shift workers. These employees may be given their checks and deposit advices before leaving their shift on the evening before payday. Third shift workers who actually report to work at midnight and leave work at 8:00 a.m. of payday, may receive their paychecks during or at the end of their shift on the morning of payday.
There are both legal and practical reasons why the state requires the distribution of paychecks on the date of the check and not earlier.
- Federal law requires the deposit of federal income and employment taxes on the day following payday. Federal laws define payday as the actual day that funds are released to the employee, not the date on the check. Should penalties be assessed against the State, the agencies who release checks early will be required to pay their share of the penalty, as it is not a budgeted payroll cost. These penalties can be sizable.
- Progress towards maximum participation in direct deposit is impeded if some employees receive their paychecks early while other employees who are on direct deposit must wait for the official payday to have access to their money. Any action that discourages participation in direct deposit is not carrying out the State’s responsibilities for proper cash management.
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