Lesson 6: Direct Deposit Versus Warrant Hold

Suspending Direct Deposit

State law requires all state agencies and institutions of higher education to report to the Comptroller’s office any person (individual or business entity) with an outstanding state debt. This process is referred to as warrant hold.

When a payee who is set up to receive direct deposit payments is placed on warrant hold, direct deposit is temporarily suspended, not canceled, and warrants are held at the Comptroller’s office until the hold is released (deleted).

There are several reasons that a payee’s warrant hold can be released. When the hold is released, direct deposit payments will resume. Therefore, it is critical that the custodial agency maintain up-to-date direct deposit information for its payees during the suspension period to ensure payments are sent to the correct account when direct deposit resumes.

Use the Payee Payment Information (PYWRNT) screen to search a payee who is on direct deposit and on warrant hold and to see whether a payment was issued as a direct deposit payment or a held warrant, using the following fields.

• DIST.TYPE (distribution type): Direct Deposit indicates the payee is set up with direct deposit.
• HOLD STATUS: On Hold indicates the payee is on warrant hold due to a state debt.
• PAYMENT NUMBER:
  • Nine digits indicate a warrant was issued.
  • Seven digits indicate a direct deposit payment was issued.
• PMT DIST (payment distribution):
  • DH = The payee is on direct deposit, but a held warrant was issued due to a state debt.
  • DD = The payee is on direct deposit, and a direct deposit payment was issued.

Example – PYWRNT

This example shows the payee is on direct deposit and is also on warrant hold, with two payments issued as held warrants and one issued as a direct deposit payment. When the hold is released, the HOLD STATUS field displays a blank and direct deposit payments will resume.

	PYWRNT.1XXXXXXXXX6                                                    MM/DD/YY 
                            PAYEE PAYMENT INFORMATION                           
                                                                                
 PAYEE NUMBER: 1XXXXXXXXX6      IAT IND:         TAXPAYER NUMBER:   
    MAIL CODE: ALL    DIST. TYPE: DIRECT DEPOSIT         HOLD STATUS: ON HOLD         
   PAYEE NAME: PAYEE NAME                                                   
                                                                                
  PAYMENT   DOCUMENT  ISSUE    AGCY   MC        PMNT            PAYMENT         
  NUMBER    NUMBER     DATE     NO.  PAID   FY  DIST  CAT       AMOUNT          
 ---------  --------  --------  ---  -----  --  ----  ---  ------------------   
 123456789  XXXXXXXX  MM/DD/YY  XXX   XXX   YY   DH    2              XXX.XX
 123456779  XXXXXXXX  MM/DD/YY  XXX   XXX   YY   DH    2               XX.XX
 1234567    XXXXXXXX  MM/DD/YY  XXX   XXX   YY   DD    2            X,XXX.XX
                                                                              
                                                                                
 END OF DISPLAY - PF3=QUIT, PF4=INQMEN

	

See Payee Payment Information (PYWRNT) on TexPayment Resource for detailed information and field descriptions.

See TINS Warrant Hold Web-Based Training and Warrant Hold on TexPayment Resource for more information about the warrant hold process.

Next: Learning Check