A bill advancing through New Jersey’s legislature requires direct deposit for all state employee compensation on and after July 1, 2014, and allows counties, municipalities and school boards to opt for mandatory direct deposit for all employee compensation on or after July 1, 2014, except for seasonal and temporary employees.

The legislation sponsored by Assembly Democrats Ruben Ramos, Matt Milam, Connie Wagner and Annette Quijano eliminates administrative costs associated with mailing pay stubs to employees by requiring that all pay information now be available online via the employee’s assigned e-mail address.

“It’s the 21st century and it’s time the state of New Jersey began acting like it,” proclaims Ramos. “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.”

Milam says, “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. Let’s save money by moving past the outdated methods of the past.”

Under the bill, the State Treasurer will also have the authority to provide exemptions and waivers for certain employees and departments that cannot accommodate the technological requirements. By fiscal year 2015, the plan could save an estimated $540,000 per year.