
Resolve a non-sufficient funds (NSF) hold on your payroll service
by Intuit•322• 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
- 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]
- If the Payroll Admin listed on your account didn’t receive the email, have them check their junk or spam folder.
- 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
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.
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.
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