An allotment is a portion of your paycheck which instead of being deposited into your primary bank account is deposited into another account as directed by you.
These funds are paid in full with the first of the month. But the reduction of your payment is spread across both paychecks. For example, suppose normally receive $1,000 on each paycheck and you establish a $100 allotment. For your normal payments on the 1st and the 15th, you would begin receiving $950. But also on the first, the $100 would be transferred to the account you directed the funds to be sent.
There are various reasons you may want to establish an allotment. You may have a savings account you are trying to fund for emergencies, a brokerage account to deposit money for investing, or some support payments.
Using allotments is great as the transfer of funds becomes automated, they are paid in full at the beginning of the month, and there is a record the funds were transferred should it come into question.
myPay had a recent face lift. As such the appearance has changed slightly. The following are the simple steps needed to set up an allotment on your own.
1. Log into myPay
The first step to set up an allotment on myPay is to access your myPay account. You can access the myPay site here. Once you are at the site, login to your account with either the password or Smart Card on the right side of the screen. Review the User Agreement that appears after you login and click the blue button at the bottom for “I agree to the terms of the User Agreement.”
2. Select "Allotments" from the Menu
After you have completed logging into your account, you will be at the main menu. On the left hand side of the screen is a list of all of the menu options. Select “Allotments“, it is the first option under the blue heading for “Pay Changes”.
3. Click "Add Dependent Allotment"
If you already have allotments, such as for medical insurance, they will presented on the next screen. Under the current allotments is a big green button on the right hand side of your screen that says “Add Dependent Allotment.” Go ahead and click on that.
4. Click "Yes" on the Pop Up
There will be a pop up with rules related to allotments. Specifically what they can be used for and what they can’t be used for. After reviewing the document to ensure you are in compliance, click “Yes.”
5. Complete the Form and click "Continue"
You are now at a form where you will enter in the information on the account you would like to receive your money. You will need the following information to complete your allotment on myPay:
– Routing Number
– Account Number
– Account Type (Checking/Savings)
– The amount to be transferred each month
– Allotee (Person who will receive the money)
Once you have completed the form, click “Continue” on the bottom right.
6. Click "Submit"
You are now taken to a page where you can review the new allotment. If everything is correct, click “Submit.”
7. Click "Finished"
You are now at a page where you can see the completed transaction. Simply click “Finished.”
Congratulations, you have successfully created an allotment in myPay.
If at a later date you would like to change or stop the allotment, you can do so by going back into the Allotments section from the main menu of your myPay account.