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MIT urges use of direct deposit

MIT employees who aren't set up to receive their paychecks via direct deposit are encouraged to do so as soon as possible. This will eliminate the need to pick up checks in person while also reducing costs for the Institute and simplifying payroll operations during the special holiday closing period.

Those who haven't signed up for direct deposit by Dec. 19 will have to pick up December checks in the NE49 lobby on Dec. 31, or on Monday, Jan. 5 at their regular locations. To sign up, fill out a bank deposit authorization form and send or bring it to the Payroll Office in Room NE49-3131. The forms are available at the Payroll Office, the Cashiers Office (Room 10-180) and in the Student Services Center (Room 11-120).

MIT issued approximately 83,000 paper payroll paychecks last year. Had these transactions been handled via direct deposit, according to Fleet Bank, the Institute could have saved approximately $100,000. Direct deposit also saves labor (as many as 10 different people touch a paper check before it's fully processed) and eliminates the time and cost of reissuing lost checks.

People who use check-cashing services rather than depositing their checks in a bank pay several dollars for that service, including surcharges for checks more than seven days old. Checking accounts are free for MIT employees at the MIT Employees Federal Credit Union.

A version of this article appeared in MIT Tech Talk on December 3, 2003.

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