How to get charged an NSF fee, when your QB Checking Account HAS A FUNDS!

hibbles · ‎March 20, 2024

Suppose your QB Checking Account looks like this and you try to run a $5000 payroll out of it:
Total Balance: $10,000.00
Checking: $0.00 Envelopes $10,000.00 Account info ****1234

You will be charged a Non-Sufficient Funds (NSF) Fee, not because your account have a sufficient balance (which you do) but because the cash is your envelopes (where you get that 5%APY), not your checking account.

The account ending in *1234 technically has a total balance of $10,000. But that balance isn't in the checking account you tried to run payroll from, it's in the envelopes, which have no account numbers. So what account is the money in?

How can you be charged a NSF fee on an account with a balance?

I can't figure this out and the QB person I spoke to over the phone couldn't explain it either. Weird also that they would recommend you create and "Employee Payroll" envelope that you can't pay payroll out of.

CamelleT · ‎March 20, 2024

I understand the importance of knowing why you're charged an NSF fee, hibbles.

You can use QuickBooks (QB) Payroll envelope to save for your payroll runs. All you need to do is move money from your QuickBooks Checking account to the Payroll envelope, and the next time you run payroll, we’ll draw funds from the envelope first. If the envelope doesn’t have enough funds, we’ll draw what funds are there and draw the remainder from your QuickBooks Checking balance.

To find out why you're being charged an NSF fee even though you have funds in your envelope, I suggest reaching out to our Contact Support Team. They have the tools to review your account and identify the root cause of this issue. Here's how:

Go to the Help icon.
Select Contact Us.
Enter your concern, then click Let's talk.
Choose a way to connect with us:

Start a chat with a support expert.
Get a callback from the next available expert.

QuickBooks Online Payroll Core - Monday to Friday, 6 AM to 6 PM PT.

QuickBooks Online Payroll Premium, Elite - any time.

Additionally, you can use this reference to find out answers to frequently asked questions about QB Checking: QuickBooks Checking FAQ.

Post a comment below if you have further questions about NSF fees or managing envelopes. I'll always be around to help.

hibbles · ‎March 21, 2024

I feel like you should clarify where the funds are when they are in the envelopes, because everything about the terms would suggest that it is a sub account of my checking, but it is not. If it was, I would have sufficient funds. So what account is it?

Clark_B · ‎March 21, 2024

Allow me to help, @hibbles.

I understand the importance of knowing what account is currently active or where the funds are in your QuickBooks Online Payroll (QBO)

To start with, it's only possible for our phone support team to verify and determine which account is currently active when transferring funds to the envelope or running your payroll. I suggest contacting our support team to get further assistance. To do so, please follow the steps given by my colleague CamelleT on how to contact them.

You might want to check this article to know more about QuickBooks Checking FAQ.

Let me know if you have other questions about the NSF fees or envelopes. I'll be around to provide further assistance to you.

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How to get charged an NSF fee, when your QB Checking Account HAS A FUNDS!