Payroll Direct Deposit Rejections

IHPC · ‎December 18, 2024

What do I all need to do if an employee's payroll deposit was rejected through direct deposit? What all needs to be done to ensure everything in my QB is correct and the employee is paid?

Let me explain the situation:

I ran payroll on Sunday, Wednesday employees pay amounts were removed from my account. Friday, employees are paid through direct deposit. However, I was notified on Thursday night that one of my employees had changed banks and that the direct deposit information I had in QB was not accurate, so I quickly went into that employee's data and updated the direct deposit account information. I was hoping that potentially she would get paid to the updated account. However, I was notified she didn't receive a deposit. I checked my account for the past 4 days and it is still showing up as a debit and not credited back since I did get an email from QB stating the deposit was rejected and funds would be returned within 5 business days. QB is stating I can issue her a paper check, but I would like to just e-transfer her, can I do that? Also, is there anything else I need to do? Wondering if deductions will still go through from the payroll run or do I need to do anything else?

thanks

MirriamM

Hi IHPC,

Oh no! Payroll issues can be so stressful - I understand how important it is to get this sorted out quickly for your employee.

It's good news that the funds are already on their way back to your account. Since you've already updated your employee's bank info in QuickBooks, you have a couple of options to get them paid:

Direct Deposit: You can void the original paycheck and issue a new one via direct deposit. This is usually the quickest and most reliable way to pay your employee, but since the deposit was just rejected, it might take a little longer than usual to process.
Print a check: You can also print a check for your employee. While this might not be as convenient as direct deposit, it's a reliable way to ensure your employee gets paid on time.

Here's how to void the original paycheck in QuickBooks:

Go to Payroll in the left menu.
Click on the Employees tab.
Select the Paycheck list link.
Find the paycheck that was rejected and select Void.
Confirm by choosing Yes.

Important note: Voiding the paycheck should prevent the deductions from going through. However, it's always a good idea to double-check your records to make sure everything is accurate.

I've also included some helpful resources below that walk you through the process in more detail:

I hope this helps! Please don't hesitate to reach out if you have any other questions. We're here to support you.

View solution in original post

MirriamM

Hi IHPC,

Oh no! Payroll issues can be so stressful - I understand how important it is to get this sorted out quickly for your employee.

It's good news that the funds are already on their way back to your account. Since you've already updated your employee's bank info in QuickBooks, you have a couple of options to get them paid:

Direct Deposit: You can void the original paycheck and issue a new one via direct deposit. This is usually the quickest and most reliable way to pay your employee, but since the deposit was just rejected, it might take a little longer than usual to process.
Print a check: You can also print a check for your employee. While this might not be as convenient as direct deposit, it's a reliable way to ensure your employee gets paid on time.

Here's how to void the original paycheck in QuickBooks:

Go to Payroll in the left menu.
Click on the Employees tab.
Select the Paycheck list link.
Find the paycheck that was rejected and select Void.
Confirm by choosing Yes.

Important note: Voiding the paycheck should prevent the deductions from going through. However, it's always a good idea to double-check your records to make sure everything is accurate.

I've also included some helpful resources below that walk you through the process in more detail:

I hope this helps! Please don't hesitate to reach out if you have any other questions. We're here to support you.

IHPC

Thank you so much for the quick response.

I will attempt to void and re-issue payment to staff.

Merry Christmas and best wishes for 2025 to you all for providing this superior service!

I am sure dealing with customers who are having issues is a tough position to be in as you don't always get the recognition you so truly deserve and are treated as though you are part of the problem, when you are not. Technology implementation and usage is always a hard one to maneuver and great when it is working for you but not so great if you feel, it is working against you. lol

So just know we do appreciate you and the help you provide.

Cheers.

Julie

IHPC

Thank you so much for the quick response.

I will attempt to void and re-issue payment to staff. Merry Christmas and best wishes for 2025 to you all for providing this superior service! I am sure dealing with customers who are having issues is a tough position to be in as you don't always get the recognition you so truly deserve and are treated as though you are part of the problem, when you are not. Technology implementation and usage is always a hard one to maneuver and great when it is working for you but not so great if you feel, it is working against you. lol

So just know we do appreciate you and the help you provide. Cheers,Julie

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Payroll Direct Deposit Rejections