Payroll deduction is a program somewhat unique to credit unions. It allows you to have a “set it and forget it” option for your money coming out of your paycheck into one or more accounts. It can be used along with Direct Deposit to JHFCU (which is your net pay after all deductions) OR can be used to allocate a part of your paycheck to a JHFCU account(s). Payroll deduction can allow you to “split” your paycheck into a variety of account types to make saving easy, or to pay back a loan, so you are never late.

Payroll Deduction is an option for Johns Hopkins Hospital, Johns Hopkins University, and some select other employers. (if there is a list, link to it; otherwise I’ll see what Bill or other staff come back with during the staff editing phase).


How Much and Where? - Eligible Accounts

Most JHFCU account types can receive payroll deductions. You can set up payroll deduction for as little as $5 per pay per account. Some can be used to help you pay for something specifically and/or save including:


  • Holiday Club

    Set up deductions to a Holiday Club account.  You can set this up at any point during the year.  Deductions continue up to and through September 30th of each year, and on October 1 the proceeds are transferred to your Share Savings account, but the deduction you set up will continue so that you begin to accrue again, unless you stop or change them.
  • Custom Savings

    You can set up a deduction to a Custom Savings account for any time, and for any reason.  You can take out money at any time. Deductions will continue unless you stop or change them.

  • Family Members’ Accounts/Other Members’ Accounts

    You have the option to have part of your paycheck directed to a child’s or spouses separate account, or any other family member or other member.  Note you will not have access to that account, unless you are a Joint Owner or Custodian on it. 

    Most other Share accounts (Share Savings, IRAs, Money Market accounts) are eligible for Payroll Deduction.  Share Certificate Accounts are NOT eligible for deductions.

  • Loans

    A JHFCU You can set up Payroll Deduction to pay off most loan types, where your monthly payment is divided into the number of paychecks you receive and the appropriate proportion is deducted from your paycheck and put on hold in your Share Savings account.  Then on your Loan Due Date (usually the last day of the month), the full monthly payment is transferred automatically to your loan.

     Some loan types, including the Johns Hopkins FASAP loan and the JHFCU Winter Wonder Loan are defaulted to Payroll Deduction payments, and for those types, your deduction actually is applied to the loan on your payday (vs being held till month end).
  • Family Security Plan Insurance

    Use Payroll Deduction to pay for your insurance premiums for life and critical illness coverage.


How Do I Start Payroll Deduction?

To Set Up or Change Payroll Deductions, use the JHFCU form (contact JHFCU to change a loan payment that is being paid by Proll Deduction).


How Long Does It Take to Start/Change Payroll Deduction?

Payroll Deductions can take 1-3 pay periods, depending on your employer’s processing cycle and when JHFCU receives the form.

Payroll Deductions typically are posted the evening before the stated payday.  But unlike Direct Deposit,  payroll deductions don’t show up as “pending”—they will post to the appropriate account when processing is completed and if they are in an unrestricted account, are available for withdrawal once posted*.


How Do I Stop Payroll Deduction and Will It Stop Once My Loan Is Paid Off?

As noted above, Payroll Deduction is “set it and forget it” and will continue until you direct us to stop deducting, or you leave your employer.  If you have a Loan with JHFCU and are using Payroll Deduction, once the loan is paid off, the deductions will continue to go to your Share Savings account, but will not be under a hold anymore and will not be transferred.  They will just accumulate in Savings, perhaps to save for a future purchase! 

*Holiday Clubs, Family Insurance Plan, and deductions into Share Accounts for Loan Payments will be posted to your account and show in your balance, but will not be available for withdrawal.