Payroll: What could go wrong?

When you’re trying to make sure your workers are rewarded for the contributions they’ve made to your business, the last thing you want is for an issue with your bank to put your payroll in jeopardy. So, let’s take a look at some of the most common payroll issues and how to solve them.

This guide is for users of QuickBooks Online Payroll.

What could go wrong: A Non-Sufficient Funds (NSF) hold on your payroll account

An NSF (NonSufficient Funds) hold is the result of a failed payroll transaction. The failed payroll transaction is usually a paycheque and can be other payroll transactions too. These Payroll holds are usually caused by not having enough money in your Payroll bank account. They can also happen when there are changes to your Payroll bank account, or the payee's bank account.

Prerequisites

• Access to the Payroll Admin email account to retrieve the NSF notification.
• The return code (for example, R01, R09) from the email message.
• The Principal Officer or Primary Principal must be available to start payment.
• Access to your bank account (online or in-person) to complete a wire transfer.
• Knowledge of your payroll funding time (same-day, next-day, 2-day, or 5-day).

Step 1: Retrieve your return code

1. When the payroll transaction failed, an email was sent to the Primary Admin, Principal Officer, or accountant for this company. That email will contain a return code and instructions for the next step. Here are some examples of subject lines this email will contain:
• Important Direct Deposit Payment Unsuccessful. ‌Urgent Issue with the Payroll account for [Business Name]
• Intuit Payroll Services Action Required: Payment Request for Failed Payroll Debit
• Intuit Payroll Services Action Required: Partial Payment Received
• Important: Tax Payment Unsuccessful. Urgent Issue with the Payroll account for [Business Name]
• Issue with payroll tax withdrawal for [Business Name]
• Failed payroll tax withdrawal for [Business Name]

1. If the Payroll Admin listed on your account didn’t receive the email, have them check their junk or spam folder.
2. Contact Support if you can't find this email. They will investigate and help you resolve the NSF hold.

If the Payroll Admin listed on your account didn’t receive the email, have them check their junk or spam folder. If they still can’t find it, contact us for help. 

Step 2: Choose your resolution path based on the return code

Return code R01 or R09

• If the redebit is successful, you don’t need to do anything more. 
• If the redebit fails, see the two options below to pay your balance due. We don’t accept cash or cheques. 
• If you need to run your payroll before the 5 banking days are up, see the two options below. Note: we may not be able to stop the automatic redebit. 

1. Intuit will attempt an automatic redebit on the day the notice is received. 
2. The account stays on hold for 5 banking days. 
3. If the redebit is successful, you don’t need to do anything more. 

If redebit fails or immediate clearance is needed, see the additional options below to pay your balance due.

All other return codes or failed redebits

Step 1: Use wire transfer or Versapay.

Option A: Use Wire Transfer

The Principal Officer or Primary Principal on your account will need to complete these steps. 

1. Use wire instructions in the email.
2. Visit your bank to request a wire transfer.
3. Hold is removed within 1 banking day upon receipt.

If the Principal Officer or Primary Principal isn’t available or wire transfers aren’t an option.

1. Contact Intuit to get a Versapay payment link.
2. Use the link to complete the payment with Versapay.

Note: We don’t accept cash, checks, or Western Union.

Step 2: Contact your bank or change your payroll bank account for future payrolls

Sometimes, you may need to talk to your bank and ask if you can add ACH debits from Intuit. If you need to, you can give them these Origin IDs.

Result

Once payment is received by Intuit, the NSF hold is removed within 1 banking day. Payroll services will be restored.

What could go wrong: My employee’s payroll information is wrong

Whether the’ve moved, changed their name, or it’s a simple error, correcting your employee’s payroll information in QuickBooks Online is a simple task:

Step 1: Edit or change your employee info

Once you have the updated info, you can make the changes in your payroll account. Select your payroll product below for steps.

QuickBooks Online Payroll

Edit an employee's info

Note: Your employees can also edit some of their personal and tax info like name, address, and TD1 info using QuickBooks Workforce.

Option 1: Update an employee from their Employee profile

1. Select your employee.
• If you don’t see your employee, change the filter on the employee list. Above the employee list select the dropdown ▼ and select Active Employees, Inactive Employees, or All Employees. 
2. Select Start or Edit on the section you want to update. If you aren’t sure what section to choose, see the table below.
3. When finished, select Save.

Option 2: Update an employee while you run a payroll

1. Select Run payroll, then select the employee's name.
2. Select Start or Edit on the section you want to update.
3. Edit their info, select Save, then select Done.

QuickBooks Desktop Payroll

1. Go to Employees and select Employee Centre.
2. Double-click the employee name you want to edit.
• If you don’t see your employee, change the filter on the employee list. Above the employee list select the dropdown ▼ and select All Employees, Active Employees, or Released Employees.
3. Make changes. If you aren’t sure what section to choose, see the table below.
4. Select OK.

The fields and tabs can vary depending on your payroll service. 

Step 2: Complete new province setup if your employee moved to another province

When your employee moves to another province, you may need to set up and pay taxes in that province.

Money movement services are provided by Intuit Canada Payments Inc.

What could go wrong: A payroll item seems to be missing

When setting up payroll and entering company or employee prior payroll totals, pay types, deductions, and taxes listed should match those that you had in your prior payroll solution. There are a couple of reasons why this might not be the base.

First, the pay type, deduction, or tad item may need to be added. Select Cancel on the prior payroll totals page and return to the employee’s profile to make your changes.

Second, the payroll tax might have a different name, such as Federal Withholding being listed as Federal Income Tax or FIT. Look for a possible alternate name for the item.

If you need to set up a prior payroll, you can do so by following these steps. 

What could go wrong: I’ve been told there’s an urgent issue with my payroll account

If your payroll service is on hold for an urgent issue, you'll be notified either through a message while trying to run payroll ("Your account is on hold, contact us") or through an email we've sent you.

It likely means that there's a payroll transaction we'd like to look at. Often, we are trying to protect you from potentially fraudulent transactions. The email will explain everything you need to know, as well as any documents you may need to send.

Since you won't be able to pay workers until the issue is resolved, follow the instructions in the email as soon as possible. Once we receive your documents, we'll review your case and get back to you within 2 business days to let you know if the hold has been removed.

What could go wrong: I’ve overpaid my payroll tax

If you have overpaid payroll tax, you will receive a credit notice from CRA. You can resolve some payroll tax overpayments in your payroll product to correct your reports and tax forms.

1. Follow this link to complete the steps in product 
2. Select Payments.
3. Find the overpaid tax in the Action Needed section and select Resolve to check the overpayment. Overpayments appear as negative amounts.
4. You can apply an overpayment to a previous year. See the article Enter historical payroll tax payments.
5. If you wish to obtain a refund or want to apply your overpayment to the next liability period, you can do so by contacting us. To have the refund credited to you, you will need to contact CRA as well.

The following are the reasons for tax overpayments. You can resolve some payroll tax overpayments in your payroll product to correct your reports and tax forms.

• One or more paycheques were voided or deleted after a tax payment was made
• You made a duplicate tax payment in the same liability period

What could go wrong: My timesheet hours are not transferring to payroll

If the hours display in the weekly timesheet and you've run payroll but the hours aren’t in the payroll fields, configure employee settings:

1. In QuickBooks Desktop, select Employees, then Employee Centre.
2. Select an employee, then Edit, and select Payroll Info.
3. Below the Earnings section, make sure Use time data to create pay cheques is selected. 
1. If hours were exported before this was selected, they won’t be transferred from the weekly timesheet to payroll. 
2. Either add the hours in payroll manually, or contact QuickBooks Time Support team for help exporting the hours again.
4. Make sure the employee is assigned to the payroll schedule you’re running payroll for.
5. Select OK.