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Reverse a direct deposit in QuickBooks Payroll

by Intuit•52• Updated 3 days ago

Learn when and how you can request a direct deposit reversal.

If you accidentally paid your employee or contractor twice, or you paid the wrong employee or contractor, you may be able to request a direct deposit to get the money back. 

You can request a direct deposit reversal 5 business days from the pay date (US). But this doesn’t guarantee that the funds will be recovered. 

Important: A reversal request doesn’t guarantee you’ll get the money back.

QuickBooks Desktop Payroll only: There’s a $75 charge even if the reversal is unsuccessful.

Step 1: Determine when to request a reversal

You can request a reversal if:

  • The reason is in compliance with ACH or EFT laws. For example, duplicate payments or unintended payments.
  • The direct deposit paycheck wasn’t rejected.
  • It’s within 5 banking days (US) of the paycheck date, before 12:00 PM PT. Note that the posting date is the day 1.
  • The bank account you want to reverse funds from must still be in the employee's profile.
  • QuickBooks Desktop only: The total amount is greater than $50 (due to the $75 direct deposit reversal fee).

If you don’t meet the criteria above, or you don’t want to pay the $75 charge, work with your employee or contractor to get the money back directly from them.

Step 2: Submit a reversal request

Make sure the original paycheck wasn't rejected. Submit a request between the third day to the fifth day of the paycheck date. If it's rejected, no need for a reversal. The money will be sent back to your bank account. 

Follow the steps below to submit a request.

  1. Go to Payroll, then Employees.
  2. Select Paycheck list.
  3. Select the paycheck(s) you want to reverse. 
  4. Select the Actions ▼ dropdown and choose Reverse.
  5. From the Reversal reason ▼ dropdown, select the reason for the direct deposit reversal.
  1. Open the Direct Deposit Reversal form.
  2. Select Add Request.
  3. Complete the required information and transaction information.
  4. Select Save.
  5. Once the reversal is approved (see the next section for details), you can void the paycheck in your payroll records.

Step 3: Check the result of the reversal request

If the direct deposit reversal request is successful

If the reversal was successful, you’ll see a deposit in your bank account in 7-10 business days. After that, void the paycheck in QuickBooks Online. 

Note: An employee or contractor can dispute the reversal for up to 60 days. If a reversal is disputed and funds have been returned, Intuit reserves the right to debit your company bank account for the disputed amount.

If the direct deposit reversal request is unsuccessful

If you don’t see the funds in your account after 10 days, the reversal wasn’t successful. Don’t void the paycheck. Since the employee or contractor received the net pay, the gross wages are valid. Work with the employee or contractor directly to get the money back. When you get the money back, you can then void the paycheck.

Your request will be reviewed, and you’ll be notified if it’s rejected or accepted. It may take up to 9 banking days to get the result.

If something is missing, your request will be sent back to you by email with a list of corrections needed. Once you save the changes, we'll review the request again. An agent may contact you to assist you in more complex situations.

If the entire amount of the direct deposit isn't available in the employee or contractor bank account, the reversal will be rejected, and no funds will be recovered.

You’ll receive an email once the request is accepted. The funds from your employees will be taken out and will be credited back to you. This process takes up to 14 banking days from the day your request has been accepted. 

Once you get the money back, void the paycheck. 

An employee or contractor can dispute the reversal for up to 60 days. If a reversal is disputed and funds have been returned, Intuit reserves the right to debit your company bank account for the disputed amount.

If you received an email that the request isn't successful, don’t void the paycheck. Since the employee or contractor received the net pay, the gross wages are valid. 
Work with the employee or contractor directly to get the money back. When you get the money back, you can then void the paycheck.

QuickBooks Desktop Payroll BasicQuickBooks Desktop Payroll EnhancedQuickBooks Desktop Payroll StandardQuickBooks Online Payroll CoreQuickBooks Online Payroll EliteQuickBooks Online Payroll Premium

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