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    Request to Reverse an Employee's Direct Deposit (DD) for Online Payroll Services

    Article ID: 1001415

    Overview

    After a direct deposit is transmitted to an employee's financial institution, there is no way to prevent the funds from being credited to the employee's account. You might, however, be able to reverse the direct deposit if you do so within the following conditions:

    • It is less than 5 days past the settlement date (typically check date) of the transaction you want to reverse.
    • The original bank account information is still listed for the employee.
    • 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.

    Assumptions

    You have processed a direct deposit and would like to reverse it.

    Details

    To reverse a direct deposit:

    Click Add Request.

    Fill out the required information and the transactions you want to reverse in the Direct Deposit Reversal form 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 transaction 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.

    Additional Information

    • 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 ($25 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 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 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.

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