Rather than contributing by a personal check all at once, payroll deduction offers the option of having a small contribution deducted from each payroll check throughout the year. For example, instead of writing a $120 check, bank employees can have $10 deducted from each month’s paycheck (if paid monthly). The money collected will then be transferred to IdaBankPAC by ACH/EFT or check each month.
Steps for employer to set up payroll deduction:
- Assign a deduction code to IdaBankPAC contributions as you would with any other deduction, i.e. Medical, Dental, 401k, etc. Contributions to IdaBankPAC do not qualify as pre-tax deductions.
- Provide your solictiable employees with the letter from you and a contribution form, where they can elect the amount they would like to contribute. Once the deduction code has been assigned, enter in the amount being contributed per pay-period.
- Your bank’s payroll specialist should send deductions for IdaBankPAC from the employees’ payroll in aggregate by ACH, wire transfer to IdaBankPAC’s account (call for account #) or via a check bundling the deductions within 10 days of the pay period, to the Idaho Bankers Association at: IdaBankPAC c/o Idaho Bankers Association, P.O. Box 638, Boise, ID 83701
- Send Idaho Bankers Association copies of the employees’ initial contribution cards. After payroll has been issued notify the PAC administrator that the funds have been transferred and provide a list of contributors, including their name, home address, employer, title, date and amount of contribution for each individual. Subsequent deductions need only to include the name, date, and amount.
- Any employee who wishes to discontinue his/her payroll deduction contribution to IdaBankPAC must provide a written statement to your payroll deduction staff otherwise the contribution should be deducted regularly from the employees pay check.