New Bill Modernizes State's Pay Roll System

State employees will now get paid through direct deposit, after a bill sponsored by Hoboken's Assemblyman Ruben Ramos Jr. was passed late last week. 

Modernizing the state's payroll system will save more than $500,000 annually, according to Ramos' announcement. Counties in the state can choose to enroll their employees in mandatory direct deposit, on or after July 1. 

The new bill eliminates the administrative costs of mailing pay stubs to employees. All information will now be available online. 

Assembly Democrats Matthew Milam, Connie Wagner and Annette Quijano also sponsored the bill. A press release about the bill stated that by fiscal year 2015, the plan could save an estimated $540,000 per year.

"It’s the 21st century and it’s time the state of New Jersey began acting like it," Ramos said. "There’s no excuse as to why the state insists on physically mailing pay stubs that are sealed in an envelope, printed on paper, stamped and labeled. This is a recurring administrative cost that the state incurs for thousands of employees."

State employees' W-2 tax forms will also be available online and no longer mailed to them under the new bill. 

"Employees receiving direct deposit that have an e-mail account with the state should simply be able to access their pay and tax information in the office or at home," said Milam (D-Atlantic/Cape May/Cumberland). "Let’s save money by moving past the outdated methods of the past."

Under this roll-out, the treasurer will also have the authority to provide exemptions and waivers for certain employees and departments that cannot accommodate the technological requirements, according to a press release.