Desktop payroll reverse a Direct Deposit transaction
- It is less than 5 days past the settlement date (typically check date) of the transaction you want to reverse.
- The reason for the reversal is in compliance with NACHA laws. Reasons can include duplicate payments, unintended or erroneous payment and/or the amount paid was significantly different than what was owed to the receiver of the payment. See NACHA website for further information and all laws/regulations regarding reversals.
- You notify the recipients of the payment that it will be reversed at the time you submit the request.
If the process is successful, the direct deposit will be returned to you.
You have processed a direct deposit and would like reverse it.
To reverse a direct deposit:
Open the Direct Deposit Reversal QuickBase.
Click the Add Request link.
Fill out the required information and the transactions you want to reverse in the Direct Deposit Reversal form (if the employee has multiple or split deposits, list each one), and then click Save.
Intuit will review your request for accuracy and to ensure all reversal transactions you are requesting abide by NACHA rules. If any transaction is inaccurate or does not abide by NACHA rules, the whole request will be rejected back to you (notification via email) and you will need to fix the transactions indicated in the email. Once you save the changes, we will be notified to review the request again. An agent may contact you to assist you in more complex situations.
Once Intuit has accepted the request, you will receive an email informing you of when the request will be processed and what to expect going forward.
A confirmation that we received your request will be emailed to you immediately.
- Carefully review all emails sent to you for your request(s).
- NACHA law states you must notify affected employees of the reversal before the debit hits their account.
- Intuit can't guarantee that the funds will be recovered.
- You will be charged a direct deposit reversal fee ($75 per payroll), whether or not the funds are recovered. The amount of the fee will be sent to you in the confirmation email once we have received your request.
- Employees can dispute the reversal for up to 60 days meaning Intuit never received the funds back from the employees 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 succeeds (and there is no current balance due on your payroll account), your bank account will be credited when the funds have been reversed from the employee's account (usually 10 days).
- If the direct deposit reversal is not successful, you cannot void the paycheck. Since the employee has received and still has the net pay, 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 is not available in the employee's account, the reversal will be rejected, and no funds will be recovered.
- The Primary Principal will be notified by email about the success or failure of the reversal.
- Stopping payment on your company's payroll funds will 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.
- If the direct deposit reversal is successful, or the employee arranges to give the net back, you will need to void the paycheck in QuickBooks and send payroll data to Intuit to complete the reversal.
- From Employees on the top menu bar.
- Select Edit/Void Paychecks.
- On the Edit/Void Paychecks screen, change both the Show paychecks through/from date to the date of the check and step off of the date dialog box.
- Highlight the check in question and click Void. A pop-up box will appear, where you will have to type "yes" and click Void once again. Mark the option agreeing to the terms and conditions of voiding the paycheck.
- Repeat as necessary to include all checks that need to be voided.
- Once the check(s) have been voided, close out of the Edit/Void Paychecks window.
- Then click on Employees on the top menu bar, and select Send Payroll Data.
- Click Send. You will note that there are Zero direct deposit checks to send. This step is done in order to let QuickBooks connect with the server to let it know there has been a check modified and will be removed from direct deposit.
- The refund check from QuickBooks Payroll Service should be downloaded into the Register for the reversed amount.
- From the Banking menu, select Make Deposits.
- In the Deposit to field box, choose the Bank Account for payroll. The date should be the checkdate of the original paycheck.
- Under the Received From column, choose the Employee whose paycheck was reversed.
- In the Account Column, assigned Direct Deposit Liabilities.
- Enter the amount of the reversed paycheck under the Amount column.