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Texas Payroll/Personnel Resource

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Credit Union Deductions
Administrative Fee and Additional Resources

Administrative Fee

For an employee whose salary and wages are paid through a warrant issued or an electronic funds transfer initiated by the Comptroller’s office, the Comptroller’s office may not charge the employee an administrative fee to cover the cost of making the deduction.

If a state employee’s salary or wages are paid through a check issued or an electronic funds transfer initiated by an institution of higher education, and the institution’s payroll costs are reimbursed from the state treasury, the institution may determine whether the employee must pay an administrative fee to cover the cost of making the deduction.

If an institution withholds a fee from the employee, it must periodically recalculate the fee to ensure it equals the cost of making the deduction. Each employee participating in credit union deduction, and participating credit unions with employee deductions, must be notified whenever the fee is recalculated. The amount of the fee may not exceed the lesser of:

  • The actual administrative cost of making the deduction.
  • The highest fee charged by the institution for making another similar deduction.

Additional Resources

To learn more about this payroll deduction, see Section 2, “Personnel,” in the SPRS User Guide.

Sources

Texas Government Code, Sections 659.101, 659.103(a), 659.106-659.108; 34 Texas Administrative Code Section 5.47(a)(3), (6)-(8), (10), (12)-(18), (b)(2)(A)-(D), (3), (5), (c)(1), (e)(1)-(2), (g), (i)-(l).