My bookkeeper approved a next day direct deposit on a Friday for it to be paid out on the following Monday. I want to cancel/halt this payment.

Hi there, @kyle-fraser-solg.

You've come to the right place! I'll walk you through the steps to cancel the next-day direct deposit for Friday.

QuickBooks allows you to stop a paycheck before the cut-off time. Follow these instructions before 5:00 PM PT, one business day prior to payday:

1. Go to Payroll, then Employees.
2. Click Paycheck list.
3. Select the paycheck you'd like to delete, then choose Delete.
   
4. Hit Yes.

If it's unsuccessful, you'll see a message explaining why. Contact us to connect to a payroll expert to void the paycheck.

What if your payday fall on a holiday? I recommend reading this article to ensure your employees get paid on time: Direct Deposit Timing for Holidays.

Please update me on how these steps turn out. I want to make sure that this matter is resolved for you. If you need further help about processing payroll, let me know in the comment section. I'll be happy to assist.

@LieraMarie_A - Sorry for not being more concise.

The payment was approved and process on Friday, meaning it's going to hit the individuals account on Monday morning (today is Sunday). Also the individual is still a contractor, not an employee. Will your steps still function as you stated 5pm on the day day BEFORE payday, which was technically Friday?

Thanks for the prompt response, @kyle-fraser-solg.

I appreciate you clarifying your concern about canceling a direct deposit for contractors in QuickBooks Online (QBO). I'm here to share some insights.

Yes, you can cancel or delete the direct deposit payment at 5 PM, one business day before payday. However, the steps shared above are for Employees, so you can follow these steps instead:

1. Go to the Expenses menu, then select the Vendors tab.
2. Select the contractor's name.
3. Look for the payment you want to delete or void, then select View/Edit.
4. Choose Delete or Void.
5. Select Yes to confirm changes.

If the direct deposit payment has been processed, you can no longer cancel or delete the transaction. You can reach out to your contractor and let them return the payment. Then, create a Journal Entry instead to offset a contractor's direct deposit transaction amount. The funds will be posted back to your bank account, and then you can resend the direct deposit payment or hand a paper check to your contractor.

For more information about the process, see this article: Void or cancel contractor payments.

In case you encounter any issues with getting the payment back, you can request a direct deposit reversal. You can request a direct deposit reversal 5 business days from the pay date, which returns funds to your account.

Also, I'm adding this resource to further guide you in managing your vendors and business expenses using QBO: Expenses and Vendors in QuickBooks Online.

I'd love to get updates on how this goes. You're always welcome to add a comment below if you have any other questions about the direct deposit for your contractors. Stay safe!