State Agencies Bulletin No. 2086.1

Updated Direct Deposit Guidance
Date Issued
January 6, 2023
OSC Actions and Agency Actions Updated
Status Date
January 6, 2023

This bulletin supersedes Payroll Bulletin No. 2086.


The purpose of this bulletin is to provide agency payroll offices with new direct deposit guidance and action steps to comply with Chapter 442 of the Laws of 2022, including the use of the new Direct Deposit Form for NYS Employees, AC 2772.


Per Chapter 442 of the Laws of 2022, on and after January 1, 2023, the Comptroller shall cause, in accordance with the rules and regulations promulgated pursuant to paragraph (b) of subdivision (4), a state employee’s net salary to be deposited directly in a bank for any purpose to an account in the name of such employee, and into which such employee has authorized such employee’s net salary be deposited, on forms provided by the Comptroller, and duly filed in accordance with such regulations. Provided, however, such employee may submit a request for exemption from the provisions on a form provided by the Comptroller.

This act shall take effect January 1, 2023 and shall only apply to state employees hired on and after such date.

Effective Dates

January 1, 2023

OSC Actions

OSC has provided a Locked Query, LQ_DDP_NEW_HIRES for agency use. This query will allow agencies to pull all employees by Department ID, hired on or after January 1, 2023, who do not have an active direct deposit balance row in the Request Direct Deposit panel in PayServ.

OSC has revised the Direct Deposit Form for NYS Employees, AC 2772, to include an Exemption Request section for direct deposit.

This section must be completed for employees hired on or after January 1, 2023 if the employee is claiming an exemption from the provisions pursuant to State Finance Law, Chapter 56, Article 14, §200(4).

Agency Actions

Agencies must have all new employees complete the updated Direct Deposit Form for NYS Employees, AC 2772, and update PayServ as needed.

Agencies may utilize the Locked Query, LQ_DDP_NEW_HIRES to ensure agency compliance. Agencies should refer to Payroll Bulletin 1971 for steps on running the new Locked Query as well as existing Locked Queries for Direct Deposit.

Upon entering a direct deposit request for a new employee, the agency should either ensure a balance row is entered, or obtain form AC 2772, with the completed exemption.

Agencies should dispose of any previous versions of the AC 2772 they may have on hand. Effective immediately, only version AC 2772 (Rev. 12/2022) should be accepted. All links to the AC 2772 form on agency internet pages should be updated to the new form.

Agencies should follow the action steps outlined in Payroll Bulletin 1971, Direct Deposit Guidance and Audit Query, to avoid potential fraud and data entry error.


Questions may be directed to the Direct Deposit mailbox.