Find answers to questions about QuickBooks Desktop payroll bank returns.

When you send payroll transactions, Intuit attempts to debit the bank account we have on file. If your bank rejects this attempted debit, this is called a bank return. That causes your payroll service with Intuit to be suspended until we're able to collect the money associated with that payroll transaction.

We explain how you can resolve bank returns.

Note: If the five day payroll suspension interferes with your next payroll, you can request a wire transfer. Please chat into Payroll Risk Management or call us at 866-729-2402.

About the process

How does Intuit process bank returns for insufficient funds and uncollected funds?

If the return was due to insufficient funds an automatic redebit is processed on the day Intuit receives the return from your bank. These debits transactions are sent to your bank at 5pm Pacific Standard time. The account is put on hold for five business days while we wait for confirmation from our bank that funds have posted successfully. You'll be notified by email as to whether this redebit is successful or not.

If you need access to the account for any transactions before the five day hold is removed, you can request a wire transfer.

What do I need to know if my return code indicated something other than insufficient funds? Like a stop payment or a closed account?

You need to send a wire transfer to settle the amount due within 24 hours of the date Intuit receives the return from your bank.

If you would like another copy of wire letter/email sent, please chat into Payroll Risk Management.  Or call us at 866-729-2402 to request a wire transfer letter. Depending on the type of return code, changes to your bank account on file could be necessary.

If you want to change your bank account so we can re-debit a new account (this process may involve up to a  seven day business hold) or if you sent a wire and need to change your account, contact us for bank-account change assistance.

If you do have a return for a closed account or Fraud filtering you will need to confirm with your bank that activity has been removed.

How can I confirm that my account status has been reactivated?

To confirm that your account status has been reactivated:

  1. Get payroll updates.
  2. Go to the Account Maintenance page.
  3. Check the status of your account in the Direct Deposit section for Basic, Standard and Enhanced payroll. Or next to Service Status for Assisted payroll.

You can also check if your account is active by sending zero payroll. If it goes through, then your account is already active. Otherwise, QuickBooks gives you a warning message. If your account doesn't appear to be active and you think it should be, please chat into Payroll Risk Management or call us at 866-729-2402.

What happens if my company receives multiple occurrences?

Risk management reviews every return (strike) our customers experience. You will receive email communication after every return received. You are automatically sent an education letter from our database on their first return. Multiple returns can result in termination of the payroll service.

Once an account has been terminated from service for having multiple returns in the last 12 months, the account is ineligible to come back on service for 12 months from the time it was terminated. Should you want to sign up for service after 12 months, you will need approval from Risk Management.

    • On the 1st and 2nd strikes, you will receive an education letter. And we may adjust direct deposit limits.
    • On the 3rd return, you will be sent a warning letter (email) letting you know that if another return occurs, the direct deposit service will be canceled. Your tax service will not be affected.
    • On the 4th return, the direct deposit service will be canceled for a minimum of 12 months.
    • On the 5th return (assisted customers only) all electronic services will be terminated.

What if the returned payroll debit was a bank error?

  • If a return was bank error: We would need you to send a letter from your bank explaining the bank error. And it must be on bank letterhead. Risk management will reevaluate the funding model and communicate the decision. Please fax the letter to 775-996-7028 with a cover letter that has their company name and Federal Tax ID Number.
  • Bank letters do not remove or waive fees. Nor do they get the hold lifted any sooner.

Why was my payroll returned to you, when the funds were available on the check date?

As stated in the Payroll Service Agreement (which your company signed during activation of the payroll service), Intuit withdraws the funds for the payroll one business day prior to the payroll check date.

Redebits

When is my account redebited?

Insufficient Funds (R01) and Uncollected Fund (R09) return codes are automatically submitted for auto redebit on the return date.

  • Payroll Risk Management applies a strike. And your payroll account is suspended for five banking business days from the auto redebit date.
  • Your payroll account remains on hold during this time. Snd no further direct deposit payrolls may be submitted until verification of receipt of funds is established.
  • We attempt only one redebit. If it fails, a wire transfer is necessary.
  • To avoid a redebit failure, fund your account the day you receive the return.

What if the redebit fails?

If redebit fails, you will receive an email stating that you have until 12 noon Pacific Time (PT) on the next business day to send Intuit a bank wire transfer. Intuit will also contact you by phone.

If Intuit doesn't receive your wire transfer by 12 noon PT the next business day:

  • Payroll service may be terminated.
  • Any outstanding taxes that have not been collected will be voided and become your responsibility.
  • Once we have exhausted our collection efforts internally, we will send your account to a third party collection agency where a 25% fee will be added to the balance due. Once an account has been turned over, Intuit will no longer work to resolve the balance. And you will need to work with the agency.

How do I initiate a bank wire transfer?

The bank wire transfer can be initiated from any bank account. It does not need to be the account normally used for payroll debits. All the information that the bank needs in order to complete the wire is included in the letter sent by the ACH Dept at Intuit Payroll Services. When you take this letter to your bank, they can answer your questions. And execute the bank wire transfer. If you need a wire letter sent again, please see Payroll Risk Management or call us at 866-729-2402 for assistance.

Do I need to call to confirm receipt of the bank wire transfer?

A phone call is not required after a bank wire transfer is made. Intuit's ACH Dept will automatically receive the bank wire, reactivate your payroll account, and send you a confirmation email as long as there are no other issues with the account (i.e. pending termination).

What if I make a payment the same day you receive the return notification?

When we receive a bank wire transfer on the same day of the return, we remove the hold on your account as soon as we verify that the funds are in our account. We check for wires twice a day, at 1 & 4 PM Pacific Standard time. It usually takes an hour to get wires posted and we will remove the hold as long as there are no other pending issues that need to be resolved.

What if the only signers on our company bank account are out of town?

In a situation where it's not possible to send a bank wire transfer, Intuit will redebit your bank account. However, this will result in your payroll service account remaining on a hold status until receipt of funds is confirmed. If we have already redebited your account and it was unsuccessful, please contact us for additional payment options.

What other options, besides a bank wire transfer, do I have for making a payment?

Versapay

Versapay is an online payment option available to all customers with a return of $25,000 or less. Payments can be made using any bank account you choose. As long as there are no debit blocks on the account.

  • There is a $0.19 fee for this payment option.
  • You will receive two emails:
    • the first is an email from Intuit explaining they opted to use Versapay and it covers the payment processing time.
    • The Second email is an invoice from Verspay. This may take three to four hours to receive. This is where the payment link is located.

If you have not received the invoice after four hours, contact Risk Management to have the email re-triggered.

Once the payment is processed the hold is removed within three to four  business days as long as there are no other issues with the account (i.e. pending termination). You will get an email stating they are active and can process payroll. (Note: Holidays may delay the completion of the payment.)

These payments can fail for up to five business days. In the event the payment fails after the hold is removed, the account will be placed back on hold and you will be notified.

If you would like to use this payment option please see Payroll Risk Management or call us at 866-729-2402.

If these options are impossible due to issues beyond your control, a redebit of your company's account can be made. However, this will result in suspension of your payroll service account until receipt of funds is confirmed.

How do I enter the NSF fee into QuickBooks so I can reconcile my register?

To enter the NSF fee into QuickBooks:

  1. Choose Banking, then Write Checks.
  2. In the Pay to the Order of field, enter QuickBooks Payroll Service.
  3. Enter the amount of the fee.
  4. On the Expenses tab select the expense account (typically Payroll Expenses)
  5. In the Memo field enter a note explaining this expense.
  6. Select Save and Close.

Payroll submission

Did my employees get their direct deposits?

Yes, Intuit does not interrupt the direct deposit credits to the employee's accounts.

I have another payroll that I need to send today and my company is on hold. What do I do?

Your payroll service account will remain on hold. And the QuickBooks system will not allow you to send additional payrolls until the returned payroll has been paid in full. You may issue manual checks to your employees until the hold has been removed.

I have transmitted two batches of payroll. The debit for the first batch was returned by our bank. Will the second batch of payroll be processed?

You need to contact us to check the status of the second batch of payroll.

If the second payroll has already offloaded our system, it will be processed and posted to the employees' bank accounts.

If the second batch of payroll is still pending, the payroll won't be processed until the redebit for the first payroll is successful. And the hold is lifted out of the direct deposit account. You can ask a payroll service representative to cancel the second batch of payroll that is still in pending, so that you can simply cut manual paychecks for your employees.

What if I have additional questions?

If you have additional questions regarding bank returns, please see Payroll Risk Management or call us at 866-729-2402. Be sure to have your tax ID (Employer Identification Number or EIN) available.