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Resolve a non-sufficient funds (NSF) hold on your payroll service

by Intuit•338• Updated 1 week ago

An NSF (NonSufficient Funds) hold is the result of a failed payroll transaction. The failed payroll transaction is usually a paycheck and can be other payroll transactions too. These Payroll holds are usually caused by not having enough money in your Payroll bank account. They can also happen when there are changes to your Payroll bank account, or the payee's bank account.

Prerequisites

  • Access to the Payroll Admin email account to retrieve the NSF notification.
  • The return code (for example, R01, R09) from the email message.
  • The Principal Officer or Primary Principal must be available to start payment.
  • Access to your bank account (online or in-person) to complete a wire transfer.
  • Knowledge of your payroll funding time (same-day, next-day, 2-day, or 5-day).

Step 1: Retrieve your return code

  1. When the payroll transaction failed, an email was sent to the Primary Admin, Principal Officer, or accountant for this company. That email will contain a return code and instructions for the next step. Here are some examples of subject lines this email will contain:
    • Important Direct Deposit Payment Unsuccessful. ‌Urgent Issue with the Payroll account for [Business Name]
    • Intuit Payroll Services Action Required: Payment Request for Failed Payroll Debit
    • Intuit Payroll Services Action Required: Partial Payment Received
    • Important: Tax Payment Unsuccessful. Urgent Issue with the Payroll account for [Business Name]
  1. If the Payroll Admin listed on your account didn’t receive the email, have them check their junk or spam folder.
  2. Contact Support if you can't find this email. They will investigate and help you resolve the NSF hold.

Step 2: Choose your resolution path based on the return code

  1. Intuit will attempt an automatic redebit on the day the notice is received. 
  2. The account stays on hold for 5 banking days. 
  3. If the redebit is successful, you don’t need to do anything more. 

If redebit fails or immediate clearance is needed, see the additional options below to pay your balance due.

Step 1: Use wire transfer or Versapay.

Option A: Use Wire Transfer

The Principal Officer or Primary Principal on your account will need to complete these steps. 

  1. Use wire instructions in the email.
  2. Visit your bank to request a wire transfer.
  3. Hold is removed within 1 banking day upon receipt.

Option B: Versapay

If the Principal Officer or Primary Principal isn’t available or wire transfers aren’t an option.

  1. Contact Intuit to get a Versapay payment link.
  2. Use the link to complete the payment with Versapay.

Note: We don’t accept cash, checks, or Western Union.

Step 2: Contact your bank or change your payroll bank account for future payrolls

Sometimes, you may need to talk to your bank and ask if you can add ACH debits from Intuit. If you need to, you can give them these Origin IDs.

Origin IDNumber
Tax payment origin IDs1943345425 7943345425
Direct deposit debit origin ID4462800242
Direct deposit return redebit origin ID5943345425
Subscription fee origin ID6943345425
Billing origin ID3943345425

Result

Once payment is received by Intuit, the NSF hold is removed within 1 banking day. Payroll services will be restored.

Frequently asked questions

Were my employees or contractors paid? What about my tax payments?

Select your payroll service to learn how we handle paying your employees, contractors, and tax payments.

Direct Deposits

Tax payments

  • The Principal Officer receives an email to make sure taxes have been paid, along with payment instructions if needed.
  • If another payroll is sent while the account is on hold, it'll be canceled and employees won't be paid by direct deposit. Paper checks may be used until the hold is resolved.

Direct Deposits

Your employees and contractors are still paid by direct deposit

Tax payments

  • For Quickbooks Payroll Assisted: federal and state taxes are paid.
  • For Enhanced e-pay: The Primary Principal receives an email making sure tax payments are made or providing payment instructions if needed.

Can I still run payroll?

Anyone on QuickBooks Online Payroll can continue to  run payroll through paper checks during a hold. Direct deposit resumes once the hold is resolved.

How can I avoid this in the future?

Help make sure sufficient funds are available in your bank account to cover all payroll-related transactions (direct deposits, tax payments, other payroll-related fees) at the time you send payroll, contractor, or electronic tax payments. 

See our terms of service for more info.

What happens if I don’t pay the balance due?

Your account will be cancelled and sent to collections within 28 days of the initial NSF.

Do you provide letters of indemnity?

We don't provide letters of indemnity. See our terms of service.

Related Links

QuickBooks Online Payroll CoreQuickBooks Online Payroll EliteQuickBooks Online Payroll Premium