Direct deposit was rejected.

Hello, @bwb.

I'd be happy assist you with creating a paper check for the rejected direct deposit of your employee. 

You can change the direct paycheck to a manual paycheck so you can pay your employee.

Let me guide you how:

1. Click on the Banking tab.
2. Select the Use Register.
3. Double-click the direct deposit check.
4. Select the Paycheck Detail button.
5. Uncheck the Direct Deposit option on the upper right.
6. Select OK.
7. Verify that there is a dollar amount on the check before printing the check.
8. Give the check to your employee.

For more details about this process, please check out this article: Employee did not receive direct deposit created in QuickBooks Desktop Payroll.

These steps should get you on track, @bwb.

Fill me in if you have any other questions with this concern. I'll make sure to get back to you as soon as I can. Wishing you and your business continued success.

That was the first thing I did, but  I get an error message and it won't uncheck or allow me to print a paper check.

According to the article you linked, that is not an option in desktop. I do think I've found the answer in that article, though. Thank you!

Shawna

Thanks for reaching back out to us, @bwb.

I appreciate the details that you've given and it's good to hear that this has been resolved.

Feel free to visit the Community if you have any concern with QuickBooks. We're always here to help. Have a lovely day!

Hello,

I have the same problem.. Can you please show me what is the solution that you found?

Hi,

I have the same problem as bwb, what is the solution I can have? Please advise.

Thank you,

Let me chime in and share some insights on how to manage rejected direct deposit, @anh cao.

To pay your employee, let's create a regular check. Here's how: 

1. Go to the Banking menu, and then select Write Checks.
2. Enter the date as the date of the original paycheck.
3. On the check, in Pay to the Order of, choose the employee for whom to issue the check.
4. In the $ (amount) field, input the net amount of the direct deposit.
5. On the Expenses tab, in the Account column, click Direct Deposit Liabilities. (Remember to select Cancel if prompted to pay payroll liabilities.)
6. Check the Print Later box at the top of the page, next to the Print icon.
7. Once done, click Save & Close. 

Then, change the direct deposit paycheck to a manual paycheck and resend the employee's paycheck via direct deposit. (This is not applicable for Desktop Payroll Assisted). For more details, please check out this article: Employee did not receive direct deposit created in QuickBooks Desktop Payroll.

Also, after you receive a reject notice from your employee's bank account, Intuit will create a deposit to your Direct Deposit Liabilities chart of account. You'll have to send a zero payroll to see the deposit. If the deposit does not appear in the Direct Deposit Liabilities account, it will be entered into the register the next time payroll is sent.

I've also added this resource to guide you in creating direct deposit paychecks in QuickBooks: Send payroll and direct deposit paychecks in QuickBooks Desktop Payroll.

Please let me know if you have a follow-up question. I'll make sure to get back to you right away. Have a blissful day.

Hi Rubielyn,

Thank you for your response. I have Desktop Payroll Assisted. How would I handle this step?

"Then, change the direct deposit paycheck to a manual paycheck and resend the employee's paycheck via direct deposit. (This is not applicable for Desktop Payroll Assisted)"

Good evening, @anh cao. 

Thanks for reaching back out to the Community and letting us know you have Desktop Payroll Assisted. I hope your day is going well so far. Let me give you some steps on how to get this resolved as soon as possible. 

Since you have Assisted Payroll, it's best to contact our Customer Support Team for the next instructions. They'll be able to do a few things on their end to ensure this gets taken care of right away. Here's how: 

1. Go to the Help menu. 
2. Pick the QuickBooks Desktop Help option. 
3. Press the Contact Us hyperlink. 
4. Give a brief description of the issue (Direct deposit rejected) and hit Continue or Let's Talk. 
5. Scroll down and choose to Get a callback. 

That's all there is to it. 

Let me know how the phone call goes. I want to make sure that you're able to get back to running your business. I'm always here to lend a helping hand. Enjoy the rest of your evening! 

I also had a rejected direct deposit paycheck for one of my employees.  The rejection shows up in the Direct Deposit Status window.  However, Intuit has not credited my payroll bank account yet.  It was rejected on the first and now it is the sixth of the month.  How long does it take???

Let's get this sorted out, @Melissa R.

The rejected direct deposit paychecks will be credited to your bank account within 14 banking days. In your case, I recommend contacting our Payroll Support so we can do a bank trace.

Please refer to @Candice C's post to reach out.

Additionally, here's a link that covers all the tasks you can do when using payroll service: Help on common payroll topics.

Get back to me anytime if you have other Direct Deposit questions. I'm more than willing to assist you. Take care and have a nice day ahead.

My direct deposit was refunded, how do I enter the deposit into the register? 

Good day, Jeff206.

Recording  refund is an easy-peasy. I've got the steps on how you can do this in QuickBooks Online.

Let me guide you how:

First, create a credit memo:

1. From the Customers menu, select Create Credit Memos/Refunds.
2. Select a customer's name.
3. Enter the total of the invoice in the Amount field.
4. Click Save & Close.

Then, record a check to refund the deposit:

1. Select Write Checks from the Banking menu.
2. Under Expenses select Accounts Receivable from the ACCOUNT column. 
3. Enter the amount of the deposit received in the AMOUNT field.
4. Select Save & Close.

Lastly, keep track of the payment:

1. Click the Customers menu and then select Receive Payments.
2. Select the customer's name.
3. Select the checkboxes for the credit memo and invoice in the Outstanding Transactions section.
4. Select Save & Close.

Also, feel free to visit our Help page for some guide and tips in managing your account.

Keep me posted if there's anything that I can help with. Keep safe!

I have an employee who's bank rejected the direct deposit.  The monies have not come back into my payroll account yet.  DD was rejected on Friday, today is Wednesday.  I do not want to void the payroll DD until I know the money is back in our account.  What do I need to do? I've printed the Intuit Payroll Service Account Info page, so I know it was rejected.

I am having this same issue. Where in the article did you find the solution?

Welcome to the Community, @BBMG.

I'll help you pay your employee via paycheck since the direct deposit was rejected in QuickBooks Online.

Once the amount is returned to your account, you can void the paycheck and update the employee's bank account. Then, recreate the paycheck and send a new direct deposit.

Another option is to create a check.

Here's how:

1. Go to Banking, then select Write Checks.
2. Enter the date as the date of the original paycheck.
3. In the Pay to the Order  ▼dropdown, select the employee you want to issue a check with.
4. In the $ field, enter the net amount of the direct deposit paycheck.
5. On the Expenses tab, select Direct Deposit Liabilities in the Account column. Select Cancel if prompted to pay payroll liabilities.
6. Choose Save, then Print.

You can also change the direct deposit paycheck to a manual paycheck to make it printable. Follow the steps below:

1. Go to Banking, then select Use Register.
2. Select the account you use for DD from the dropdown ▼, then select OK.
3. Double-click the direct deposit paycheck.
4. Choose Paycheck Detail to open the paycheck.
5. Clear the Use Direct Deposit option.
6. Click OK.
7. Verify that there is a dollar amount on the check, then select Print.

This option is not allowed in QuickBooks Desktop Payroll Assisted as it may affect other accounts.

Here is an article for the detailed steps: Handle a direct deposit paycheck that was not received by an employee.

I'm also adding this article to guide you if you want to set up a scheduled payroll: Set up and manage payroll schedules.

 Let me know if you have questions about running payroll in QuickBooks Online. I'm always here to help. Have a great day.

is this for online or desktop? Step 3 is not an option for me... 

Thanks for joining this thread, KM_HCLC.

If a direct deposit check has already been processed or sent to Intuit, you'll need to void it initially to be able to create a paper one.

Here's how to void it:
 

1. In your top menu bar, go to Employees, then Edit/Void Paychecks.
2. Change the Show paychecks through/from dates to the date of your paycheck that needs to be voided, then press Tab on the keyboard you're using.
3. Click your check-in question and hit Void.
4. Enter "YES", then select Void.
5. Tick the checkbox to agree with your terms and conditions of voiding paychecks.

After voiding, you'll need to send the voided paycheck to Intuit before creating your paper check:
 

1. In the top menu bar, go to Employees, then Send Payroll Data.
2. Click Send. You won't see any direct deposit checks to send, but this lets our system know to cancel your paycheck.
3. Enter the payroll PIN and select OK.

After sending your voided paycheck, you can create a paper one. If you're using a Payroll Assisted subscription, you'll need to contact our Customer Care team for assistance with voiding paychecks.

In the event you're using QuickBooks Online Payroll, you can refer to our Edit, delete, or void employee paychecks article.

Please feel welcome to send a reply if there's any additional questions. Have a wonderful Friday!