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) or 4 business days (Canada). But this doesn’t guarantee that the funds will be recovered.
Important: A reversal request doesn’t guarantee you’ll get the money back. 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 total amount is greater than $50 (due to the $75direct deposit reversal fee).
- 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.
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.
- Open the Direct Deposit Reversal form.
- Select Add Request.
- Complete the required information and transaction information.
- Select Save.
- 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 we sent to your email
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.
If the direct deposit reversal request is successful
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 the direct deposit reversal request is unsuccessful
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.
FAQs
You can request a reversal if: The reason is in compliance with ACH or EFT laws. For example, duplicate payments or unintended payments. The total amount is greater than $50 (due to the $75direct deposit reversal fee).
Can a payroll direct deposit be reversed? ›
A reversal request may be made by the paying agency for an erroneous direct deposit payment that has been transmitted to the automated clearing house (ACH) network. A reversal is an attempt to retrieve the funds; it is not a guarantee the funds will be recovered.
How to cancel direct deposit payroll in QuickBooks? ›
How to cancel a direct deposit in QuickBooks Online
- Navigate to Tab "Payroll"
- Click "Employees"
- Select the employee whose direct deposit you want to cancel.
- Click "Paycheck list"
- Click on "Direct Deposit"
- Click on 'Make an adjustment'.
- Delete or Void the direct deposit.
QuickBooks Desktop Payroll Basic, Standard, Enhanced
Go to the Payroll Info section. Under Direct Deposit Bank Account select Edit. Enter your payroll PIN, then select Continue. Enter your new bank account info, then select Update.
How do I correct a deposit error in QuickBooks? ›
how do I correct an error in my Bank Deposit entry
- Click the Magnifying glass, then look for the transactions under Recent Transactions.
- Once found, click the transaction, then edit all the necessary information.
- Click Save.
If you have sent payroll to QuickBooks, you can void the paycheck. However, depending on your processing time, the debit from your bank account for payroll taxes and direct deposit may not be stopped.
Can you cancel a direct deposit? ›
To cancel Direct Deposit, notify your Payer (employer, government agency or payroll provider) of the change. It can take up to 2 pay cycles for Direct Deposit to stop once your employer or payroll provider has received and processed your notification.
Can direct payments be reversed? ›
Making a Claim. If you notice an error on the same day a payment was made, you can call your bank and reverse the payment immediately. However, if you notice it at any point afterwards, your bank will need to make an 'indemnity claim' to the collecting organisation on your behalf.
Can you edit payroll after it is submitted in QuickBooks? ›
To correct a submitted payroll check, you'll have to void or delete and then recreate it. I'll show you how. Go to the Payroll menu, then the Employees tab. Click the Paycheck list link to open the submitted paycheck.
How do I delete a deposit in QuickBooks record deposit? ›
How do I delete a deposit?
- Go to the Banking menu.
- Select Use Register.
- From the Select Account drop-down, choose the account where the incorrect transactions were recorded.
- Click Ok.
- Locate the deposit transaction.
- Right-click on the deposit.
- Pick Delete Deposit.
- Click Ok to confirm.
To void a deposit, click on the Void Deposit option under the Edit menu. Click Save & Close and then click Yes if QuickBooks asks you to confirm the change. The checks included in the deleted deposit return to the undeposited funds account, which can be found in Record Deposits under the Banking menu.
Can you reverse payroll in QuickBooks? ›
QuickBooks Desktop lets you save your paycheck and resume it later without losing any of your progress. You can also choose to revert paychecks if there are changes or new updates installed. When you revert a paycheck, it goes back to the original info.
Can a deposit be reversed? ›
Can a bank reverse a check deposit? Technically, a cleared check cannot be reversed. But if a check bounces, the bank can remove funds they had deposited into the payee's account.
How long does it take to reverse a direct deposit? ›
However, the ACH system usually requires the reversal to be submitted within five banking days of the original transaction. After submission, it can take another 1-3 business days for the reversal to be processed by the employee's bank. Keep in mind that some banks might have additional processing times.
Can you void a direct deposit in QuickBooks? ›
If you need to make any changes to direct deposit paycheck, you must void the payment you already sent before the offload schedule. To void a direct deposit paycheck, here's how: At the top menu bar, click the Employees. Select Edit/Void Paychecks.
Can a QuickBooks payment be reversed? ›
Go to Bookkeeping, then select Transactions, then select the All sales tab. Find and select the sales receipt, invoice, or payment you want to apply a refund to. In the footer, select More, then select Refund.
How do I cancel a direct deposit? ›
To cancel Direct Deposit, notify your Payer (employer, government agency or payroll provider) of the change. It can take up to 2 pay cycles for Direct Deposit to stop once your employer or payroll provider has received and processed your notification.
How do I undo a voided deposit in QuickBooks? ›
There is no automatic way to reinstate a voided transaction. However, you can open and view most of the information for the transaction, then just re-enter the transaction manually.
