Financial losses are considered to be a huge thing and every business owner can agree to that. In tune with that, an incorrect direct deposit can prove to be very fatal and a tremendous loss to the users of QuickBooks.
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But not to worry. QuickBooks provides an option for direct deposit from a particular account. But there are multiple conditions that are required to be implemented. In today’s article, you will learn how to successfully reverse a direct deposit in QuickBooks and everything important related to it.
Talking about reversing a direct deposit, here is an explanation. In case you pay your employees more than once or you may have paid the wrong employee, you can request a direct deposit to receive the money back. It is possible to request a direct deposit reversal within 5 days from the pay dates (as per US rules) or 4 days (as per the rules of Canada). However it does not ensure that the funds will be retrieved.
Before we learn about how to reverse a direct deposit in QuickBooks, let us first learn about the conditions required to reverse a direct deposit in QuickBooks.
Cases When You can Request a Reversal
If you wish to have the funds returned to your account, you need to know how to request a direct deposit reversal. On QuickBooks Payroll, you would be able to request a direct deposit reversal. But to do so, you have to ensure that the request is being made within 5 business days from the payment date. You can start requesting between the 3rd and 5th-day post to your payday.
Also, adding to the same note of discussion, you must be aware of the additional charge incurred on reversal requests. Each reversal request would cost you $75. This charge would be still applicable if you don’t get the money back.
What are the Conditions to Reverse Direct Deposit in QuickBooks?
There are a certain set of criteria that needs to be met for a successful reversal of direct deposit in QuickBooks. Such conditions are stated below:
- The minimum amount of deposits must be USD 50.
- The request for Reversal can only be done for full payment. In a request for reversals, no partial amount return request will be encouraged.
- It is not possible to request a reversal for a present employee.
- The request to reverse a particular payroll direct deposit in your QuickBooks account must be completed within 5 days of the payday.
- The cause for a QuickBooks direct deposit reversal must be in sync with the EFT and ACH laws. It comprises issues like unintended or wrong payments, duplicate payments, or doing payments more than the owed amount.
- The bank account you wish to reverse funds from should still be in the particular employee’s profile.
What to Know Before Requesting Direct Deposit Reversals?
Now that you have known how to proceed with requesting direct deposit reversals in QuickBooks Payroll, there are certain things to keep in mind before you get started with it.
- The very first thing, as also mentioned above, to keep in mind before you proceed with requesting direct deposit reversals in QuickBooks Payroll, is that reversal requests do not assure funds recovery.
- Once you have requested, the reversal transaction will take up to 5 working days for processing. This will be applicable from the date of your request.
- If you stop the payment, it won’t obstruct or avoid the payroll from getting deposited to either the contractor or employee bank account. It will end up resulting in Non-Sufficient Funds with Intuit. Thus, advisably, you must ensure that you have an updated Direct Deposit Authorization form that has been sourced from all of your present contractors or employees.
- Before making any requests for direct deposit reversals in QuickBooks Payroll, make sure that it is being notified on a prior basis to your contractors or employees. Since each of the requests charges you $75, proceed ahead with all of these pointers checked thoroughly.
How to Request Direct Deposit Reversal in QuickBooks Desktop Payroll?
Here are the steps to reverse a direct deposit in QuickBooks:
Step 1: Find out When a Request for Reversal Should be Made
- In compliance with ACH or EFT laws, such as duplicate payments or unintended payments.
- Due to the $75 direct deposit reversal fee, the total amount is greater than $50.
- Direct deposit of the paycheck was not rejected.
- Within five Business days (US) of the paycheck date, before 12:00 PM PT. Note that the posting date is the first day.
- The bank account you want to reverse funds from must still be in the employee’s profile.
Note: In case you do not meet the criteria or conditions to reverse direct deposit in QuickBooks, or you are reluctant to pay the USD 75 charge, you can work with your particular employee to retrieve the money from them directly.
Step 2: Submit a Request for Reversal
Ensure that the actual paycheck was not rejected. You must submit a request somewhere between the 3rd to the 5th day of the paycheck. In case it is rejected, a reversal is not needed. The money will be delivered to your particular bank account.
Here are the steps to submit a request for reversal:
- Open the particular Direct Deposit Reversal Form.
- Choose Add Request.
- Finish the needed information and transaction detail.
- Choose Save.
- When the reversal is sanctioned, you need to void the paycheck in your particular payroll records.
Step 3: Review the Outcome of the Reversal Request Sent to Your Provided Email
Your particular request will be analyzed and you will be informed if it is accepted or rejected. It may consume around 9 banking days to achieve the needed outcome.
In case something is lacking, your particular request will be reverted back to you via email with the list of all the corrections or modifications required. After you save the changes, the request will be analyzed once more.
Note: In case the total amount of the direct deposit is not present in the contractor or employee bank account, the reversal will not be accepted and money will not be recovered.
In Case the Direct Deposit Reversal Request is Successful
In case the direct deposit reversal request is successful, you will get an email after it is accepted. The amount from your particular employee will be retrieved and credited to you. In this process, around 14 banking days from the day, the request has been made acknowledged.
After you get the funds back, you need to void the paycheck. A contractor or an employee can dispute the particular reversal for around 60 days. In case a reversal is disputed and the amount has been sent back, Intuit has the right to debit your particular company bank account for the amount disputed.
In Case the Direct Deposit Reversal Request is Not Successful
In case the direct deposit reversal request is not successful, you will get an email stating the request has been rejected. In such a case, you do not need to void the paycheck. Since the contractor or the employee got the net pay, the gross wages are effective. To get the money back, you need to work with the contractor or employee directly. When the money is received back, then you must void the paycheck.
We hope that it is clear to you how to reverse a direct deposit in QuickBooks. In the article provided above, we have stated all the conditions required to reverse a direct deposit in QuickBooks. We have also stated the most feasible and apt solution to this issue.
However, for those who are new to QuickBooks or new to the idea of solving the problem with the help of the steps given above, you may experience a problem. For such individuals, our team of Dancing Numbers experts is always available.
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+1-800-596-0806 or chat with experts.
Frequently Asked Questions
How It is Possible to Authenticate Direct Deposit in QuickBooks Desktop?
In order to authenticate direct deposit in QuickBooks Desktop, you need to log in to your particular QuickBooks account. The remaining steps are mentioned below:
- Press on the Employee tab, available on the top menu bar.
- Select the option, My Payroll Services. Now, you need to press on the option, Activate Direct Deposit.
What are the Mandatory Points to Remember prior to Requesting Reverse Direct Deposit in QuickBooks?
Requesting a reversal in QuickBooks must be a well-planned decision. There are a couple of things that you must know prior to submitting the request.
Note: Submitting a request for reversal of direct deposit does not provide assurance that the fund will be received back. It is a complete approval procedure.
Here are the mandatory points to remember:
- Ensure the actual check was not rejected. If it was accepted, then reversal is not needed
- The due process can consume around 5-9 days
- Regardless of the result of the request, USD 75 is charged
What should I do next if the Direct Deposit Reversal Request has been accepted and the Reversal is Successful?
If your direct deposit reversal request has been accepted and the reversal is successful, it means that your contractor/employee has arranged to return the net amount. In this case, make sure that you void the paycheck. Only once you void the paycheck, after the direct deposit reversal request has been accepted, would complete the entire procedure for reversal.
When is the ideal time for me to make requests for Direct Deposit Reversals in QuickBooks Payroll?
There are several cases, where it would be recommended for you to make requests for direct deposit reversals in QuickBooks Payroll. Here are some of such cases put down together:
- The overall amount should be more than $50 since the direct deposit reversal fee is $75.
- You can place requests for direct deposit reversals only between the 3rd and 5th day and it must be post the pay date. This will confirm that the original pay check was not rejected. in case there is a rejection, you would not require further reversal.
- The respective bank account from where you wish to reverse funds must remain to be active in the employee’s profile.
- Ensure that the reason which you list for the reversal complies with EFT or ACH laws. To state an example would be unintended payments or duplicate payments.