Direct Deposit Frequently Asked Questions

How do I set up Direct Deposit for my paycheck?

Follow these step-by-step instructions to set up your initial direct deposit on the FMS website.

I am paid biweekly. How long will it take until my Direct Deposit goes into effect?

If you input your direct deposit information into the payroll system before payroll closes for the current pay period, your direct deposit will go into effect for that period. If you input your direct deposit information into the payroll system after payroll closes for the current pay period, your direct deposit will go into effect for the following pay period.

In the case that you enroll in direct deposit too close to payday for direct deposit to take effect for that pay period, you will receive an email asking you to pick up your paycheck in Poplars 527 (or your campus payroll office). You must present a photo ID to collect your paycheck.

I am paid monthly. How long will it take until my Direct Deposit goes into effect?

If you input your direct deposit information into the payroll system before payroll closes for the current month, your direct deposit will go into effect for that month. If your input your direct deposit information into the payroll system after payroll closes for the current month, your direct deposit will go into effect for the following pay period.

In the case that you enroll in direct deposit too close to payday for direct deposit to take effect for that pay period, you will receive an email asking you to pick up your paycheck in Poplars 527 (or your campus payroll office). You must present a photo ID to collect your paycheck.

How will I know if my Direct Deposit information was saved in the payroll system?

If no errors occur while setting up your direct deposit information, the payroll system will automatically send you an email confirmation when the changes have been saved.

When will my Direct Deposit funds be available?

Banks are not required to make funds available until the actual pay date. JP Morgan Chase, the bank that distributes IU’s payroll funds to our employees’ banks for direct deposit, processes all ACH files (including IU payroll files) one day before the effective date of the payments (payday). Some banks may provide you with access to funds before payday, but this practice is changing within the banking industry. Most banks will not provide access to funds prior to payday.

I’m saving money for college through a 529 plan. Can I use Direct Deposit to fund the plan?

Yes, you can use payroll direct deposit to fund your 529 plan. 529 plans are another type of savings account, which you can simply add as any other account once you have the plan’s routing number and account number. Refer to the Fund a 529 Plan direct deposit instructions on the FMS website for more information about adding another direct deposit account. 

Can I set up multiple accounts for my Direct Deposit?

Yes, you can set up multiple direct deposit accounts. Refer to the Add Additional Account(s) direct deposit information on the FMS website for more information about multiple direct deposit accounts.

I set up Direct Deposit for my paycheck, but some bank information has changed. How do I update it?

Follow these step-by-step instructions to change your account information on the FMS website.

Why can’t I see my Direct Deposit information in the payroll system?

Indiana University masks your account number to prevent identity theft and fraud. Masking this critical data reduces the chance that a hacker or phisher could obtain your bank information and cause you financial harm. 

How does Direct Deposit work?

IU produces a computer file for each pay period that contains a record for each employee participating in Direct Deposit. The record identifies each employee's net deposit amount, their financial institution, and their account number.

IU delivers this file to our financial institution, which, in turn, enters the file’s data into the Automated Clearing House (ACH) system. There, the deposits are sorted and electronically forwarded to your financial institution for credit to your account on payday.

Is there a fee for using Direct Deposit?

No. IU does not charge its employees for direct deposit services.

What happens if I do not sign up for Direct Deposit?

IU automatically issues paycards to employees who have not signed up for direct deposit prior to their third paycheck. The paycard will be issued and held in Poplars 527 (or your campus payroll office) to be picked up by either the employee or the department's Fiscal Officer. A photo ID is required for pickup. Refer to this paycard information page on the FMS website to learn more about paycards.

How do I stop my Direct Deposit?

Direct deposit for payroll is required for all IU faculty and staff. If you need to discontinue direct deposit for your paychecks, please submit an online FMS Customer Service request to discuss your situation. You may also contact FMS Customer Service by calling (812) 855-0375.

Can I forward my Direct Deposit funds to a non-U.S. bank?

No, you cannot forward your direct deposited accounts to a non-U.S. bank. As of September 18, 2009, U.S. banking regulations changed, and funds electronically deposited via Automated Clearing House (ACH) in a U.S. bank and then forwarded to a non-U.S. bank are required to include additional information that is not collected by Indiana University.