After a direct deposit is sent to your employee's financial institution, there is no way to prevent the funds from being credited to your employee's account.
You might be able to reverse the direct deposit. Be aware that NACHA (National Automated Clearing House Association) guidelines are strict and allow direct deposit reversals only under certain conditions.
Need to request a direct deposit reversal? Make sure ALL of these conditions apply
- It's been less than 5 days since the transaction settlement date.
- The original bank account info is still listed for the employee.
- The reason for the reversal is in compliance with NACHA (National Automated Clearing House Association) laws. Reasons can include duplicate payments, unintended or erroneous payments, or the amount paid was significantly different than what was owed to the receiver of the payment. See NACHA website for further info and all laws/regulations regarding reversals.
- You notify the recipients of the payment that it is to be reversed at the time you submit the request.
Submit a reversal request
- Go to the Online DD Reversal Request website.
- Click Add Request.
- Fill out the required info and the transactions you want to reverse, and then click Save.
What happens next
- Intuit reviews your request for accuracy and ensures the request abides by NACHA rules.
If any transaction is inaccurate or does not abide by NACHA rules, the entire request is rejected and we'll send you an email notification with instructions on what you need to do to fix the problem. Once you make and save the changes, we'll review the request again.
An agent may contact you to help out in more complex situations.
- Once Intuit has accepted the request, you receive an email letting you know when the request is processed and what to expect next.
Keep in mind
Here are a few things to keep in mind when considering or submitting a direct deposit reversal:
Before you send the request
- Intuit can't guarantee that the funds are recovered.
- You are charged a direct deposit reversal fee ($75 per payroll) — whether or not the funds are recovered. The amount of the fee is sent to you in the confirmation email once we've received your request.
- Stopping payment on your company's payroll funds does not prevent the direct deposit from being credited to the employee's account if the funds have already been transmitted to the employee's financial institution.
- The Primary Principal Officer of your company is notified by email about the success or failure of the reversal.
After you've sent the request
- Carefully review all emails sent to you about your requests.
- NACHA law states you must notify affected employees of the reversal before the debit hits their account.
- Employees can dispute the reversal for up to 60 days, which means Intuit never receives the funds back from the employee's account. If the employee does dispute the reversal and Intuit has already credited you those funds, we reserve the right to debit your company account for the disputed transactions.
If the reversal request is NOT SUCCESSFUL
- You cannot void the paycheck. Since the employee has received and still has the net pay amount, the gross wages are valid. The only way to get the money back at that point is to work directly with the employee.
- If the entire amount of the direct deposit isn't available in the employee's account, the reversal is rejected and no funds are recovered.
If the reversal request is SUCCESSFUL
- If there is no current balance due on your payroll account, your bank account is credited when the funds have been reversed from the employee's account (usually 10 days).
- (Or the employee arranges to give the net amount back) You'll need to void the paycheck in QuickBooks Online and send payroll data to Intuit to complete the reversal.
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