Important AlertsResolve bank returns due to NSF (nonsufficient funds or uncollected funds)
Article ID: 1000054
PrintOverview
When you send payroll transactions, Intuit attempts to debit the bank account we have on file. If your bank rejects this attempted debit, this is called a bank return and your payroll service with Intuit is suspended until we are able to collect the money associated with that payroll transaction. This article explains how to address this situation. For information on how to resolve your specific bank return, refer to the email sent on the date of the return.
Assumptions
Your payroll transaction debit must be returned by your bank to Intuit.
Expected Outcome
You will have the information needed to resolve a payroll debit return.
Details
Bank Returns Due to Insufficient or Uncollected Funds
Two Return Codes are automatically submitted for auto redebit on the return date. Our Risk Management Group (RM) applies a strike and your payroll account is suspended for an additional 5 banking business days from the auto redebit date. To avoid a redebit fail, fund your account the day you receive the return.
If redebit fails, you will receive an email stating that you have until 12 noon Pacific Time (PT) on the next business day to send Intuit a bank wire transfer. Intuit will also contact you by phone. (See Request a Wire Transfer below for more information.)
If Intuit does not receive your wire transfer by 12 noon PT the next business day:
- Payroll service will be terminated.
- Any outstanding taxes that have not been collected will be voided and become your responsibility.
- Outstanding amounts will be sent to our Collections department.
Payroll suspensions stop tax payments from being made to the taxing agencies until the hold is removed from your account and all funds have been received.
If the 5-day payroll suspension interferes with your next payroll, you can request a wire transfer.
Request a Wire Transfer
Email urgentpayrollissue@intuit.com with the following information before 12 noon PT, the day Intuit receives the bank return
urgentpayrollissue@intuit.com
- Subject line: Wire Transfer Request
- Email body: Company name, tax ID
- Statement asking to cancel auto redebit and confirmation that a wire transfer will be sent no later than 12 noon PT, 1 business day after the return date.
You will receive a confirmation letting you know we received your request and auto redebit has been stopped.
If Intuit receives your wire request after the time and date stated, an auto redebit cannot be stopped.
Call Intuit payroll service and support at 888.712.9702 if you have further questions. Be sure to have your tax ID (Employer Identification Number or EIN) available.
Reactivate Payroll Service: Send a zero payroll in QuickBooks. If the send is successful, your company's payroll service is reactivated.
Frequently Asked Questions
Did my employees get their direct deposits?
Yes, Intuit does not interrupt the direct deposit credits to the employee's accounts.
What If the returned payroll debit was a bank error?
Have the bank fax or email a letter, on bank letterhead, to the FRG team at 775.996.7028 or urgentpayrollissue@intuit.com to remove the occurrence.
What happens if my company receives multiple occurrences?
If Intuit receives additional payroll debit returns within a 12-month period, we will review your payroll account and might suspend your company's payroll services.
Why did I receive two debits to my bank account for the same payroll?
Beginning Q2 2011, Intuit QuickBooks Assisted Payroll debits for payroll taxes, direct deposits, and fees will be split into two debits per payroll.
Your bank may reject one or both of the debits if there is insufficient funds to cover the amounts. If your bank rejects both debits, Intuit will only charge the $100 NSF fee one time, but your bank can add service charges for both debits.
- For paychecks dated April through September 2011, one debit is for federal taxes only. The other will include the remainder of the normal payroll debit. This can include state taxes, direct deposits, and payroll fees.
- For paychecks dated October through December 2011, one debit debit will be for federal and state withholding taxes (if you have state withholding in AR, AZ, CA, CO, MN, MT, NC, OH, OR, and SC) only. The other will include the remainder of the normal payroll debit. This can include state withholding for the remaining states, state unemployment, direct deposits, and payroll fees.
- For paychecks dated after January 1, 2012 one debit is for all taxes including Federal Taxes, State Withholding and Unemployment. The other will include the remainder of your normal payroll debit, including direct deposits and payroll fees.
Your bank may reject one or both of the debits if there is insufficient funds to cover the amounts. If your bank rejects both debits, Intuit will only charge the $100 NSF fee one time, but your bank can add service charges for both debits.
