Direct deposit is eco-friendly option

With the “going green” movement gaining steam, the campus community has moved to conserve – from increased recycling bins to biodegradable eating utensils.

But a significant campus paper-waster often goes overlooked: paychecks.

Virtually all UCLA employees can decide between having their salaries directly deposited into their bank accounts or receiving paper checks, an option that costs the university more and uses more paper.

The university has made progress in promoting direct deposit, but a significant minority are still hanging on to the old-fashioned eco-unfriendly payment mode.

Fourteen percent of the employees paid by UCLA payroll services – which is responsible for UC Office of the President and UC Merced employees as well – receive paper checks, said spokesman Phil Hampton.

That’s almost 6,400 employees getting one or two paper checks every month.

“It’s been difficult to incorporate the last 14 percent,” Hampton said.

Employees who haven’t made the transition are generally low-salaried staff, Hampton said.

Some don’t trust online banking, others simply don’t have bank accounts.

“That might sound arcane but it’s true,” Hampton said.

The university has made modest increases in direct deposit year after year for the last several years, jumping from almost 82 percent in 2003 to 86 percent last year.

Though the direct deposit option became available almost 20 years ago, the university is still obligated by law to provide the option of paper checks.

Many employees rave about making the switch.

“It’s easy. I don’t have to pick it up. I don’t have to deposit it myself,” said Belinda Sunnu, an administrative specialist in the political science department. “What you get is the end result, instantly.”

The university has made efforts to encourage direct deposit, showing new hires a video explaining direct deposit, Hampton said.

For those reluctant to make the switch, the university is forced to spend roughly $10,000 a year paying employees to sort, stuff and distribute checks, Hampton said. The overall cost also includes paper and ink costs, which were not immediately available.

The switch to direct deposit typically requires employees to provide some account information, a voided check and a signed waiver. Once the process is complete, employees can view all their payment data online, through a password protected service.

“People generally want to receive direct deposit because it’s more convenient,” Hampton said.