Missing Direct Deposits

I’m here to help clarify and address the failed direct deposit issues for your employee, Rushing.

The Payment Refused by Biller or R23 - Credit entry refused by receiver indicates that the recipient returned the payment due to several possible reasons, including that the minimum or exact amount was not remitted, the bank account is involved in legal action, or the payment represents an overpayment. This may also occur if the originator is unknown to the recipient or if they haven't authorized this credit entry for their bank account.

To fix this, I recommend contacting your bank's representative for guidance. They can provide the assistance and help identify the cause of the error.

For more details, please see this article: Handle a direct deposit paycheck that was not received by an employee.
 

As for the funds used for the payroll, please know that it will automatically be returned to your account. However, it depends on your bank on how long this rejected transaction will be refunded back to you. 

In the meantime, you may want to consider using alternative payment methods, such as issuing paper checks or utilizing other electronic payment options to pay your employees. 

Moreover, if you want to handle voided direct deposit checks in QuickBooks, here's a helpful article you can check out: Recreate a missing or voided direct deposit paycheck in QuickBooks Desktop Payroll.

The Community space is always available for you if you need additional assistance with managing the failed direct deposits for your employees, Rushing. We’re committed to helping you resolve your concerns as quickly as possible.

Thank you for your reply.

I have confirmation from QuickBooks the first employee did not receive his pay, but as near as I can confirm, the second employee was paid.  I confirmed his account numbers, but he says he has not been paid.  How do i confirm he did not receive the money so I can issue him a check and get my money back for the original DD?

Thank you for the prompt response, Rushing. I'm here to help you verify if an employee received the money you processed through direct deposit inside QuickBooks Desktop (QBDT).

In QBDT, you can review the direct deposit status as they are the identifiers that let you know if workers receive the funds in their bank. These are the DD statuses that you'll want to take note of:

• Sent to Intuit. We received your payroll and we're processing it.
• Sent to Bank. We’ve sent the debit request to your bank account.
• Payroll processed. We debited your account and sent the payroll to your employees' banks.

I'll write down the steps so you can check the update about the employee's DD status:

1. Access your QuickBooks Desktop company.
2. Click the Employees menu and select View Payroll Run Status.
3. In the Recent payrolls section, select a payroll.
4. Select the View Payroll Run Status ▼dropdown, then Selected payroll. You'll see the status of the paycheck in the Payroll status window.

For more details, please refer to this page: Check the status of your employee direct deposits in QuickBooks Desktop Payroll.

You can also reach out to our Payroll Support Team so they can help you with tracking the direct deposit. See this page for more details: Get help with QuickBooks products and services.

I'm including this detailed resource to help you with voiding paychecks which will come in handy moving forward: Edit, delete, or void employee paychecks.

If you have more questions about QuickBooks or need assistance handling employee payroll tasks, I encourage you to comment below. I'll provide a response that can help address your queries inside the program. Stay safe.