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What To Do When An Employee's Direct Deposit Doesn't Hit

iconDirect Deposit icon3 min read
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It’s payday, and you get a worried call or email from one of your employees. They say they checked their bank account and weren’t paid. How do you investigate and resolve this?

In the 2019 Getting Paid In America survey, more than 93% of people surveyed receive their pay via direct deposit. It’s no surprise this number is very high because payment via direct deposit is fast and accurate. Unfortunately, mistakes still happen, and, as any payroll professional knows, you need to be prepared for when they do and act quickly. Here are a few tips to help troubleshoot a missing direct deposit payment.

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One Employee did not receive their Direct Deposit.

Account was Prenoted

When you hire a new employee, or a current employee gets a new account, you have the option to test the transaction and send a prenote. A prenote is a zero-dollar test to validate the employee’s bank account information. Prenotes are sent and verified before direct deposit payroll can be processed. If an account is prenoted, an employee will automatically get assigned a paper check. 

If an employee would like to elect the first check to go to direct deposit, the prenote should be removed. If the employee has an additional account to receive 100% of their net pay, the funds will go to that account. Make sure to look at the account information against any employee designations for their payment.

Verify account information

When an employee’s direct deposit doesn’t hit their bank account, employers should verify the employee’s bank account and routing number. If the account and routing numbers are correct, have the employee reach out to their bank to see if the transaction is pending. If the account numbers are incorrect, you have two options to resolve the issue. You can issue the employee a manual check or send the deposit back through the ACH network with an updated account and routing number.

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Employees Received their Direct Deposit

Verify Check Date

Often errors happen due to simple mistakes. It might sound obvious, but make sure you double-check that the pay date is correct. You may have entered the wrong date when processing payroll. 

Verify the check date first. If the check date is incorrect and you use a payroll processing company, call your payroll processer for support. If caught early enough, it may be possible to adjust the check date and have true same-day processing. If the check date is correct, it could be that same day processing was not requested or payroll was processed without enough time between the check date. If this is the case, reach out to your payroll processing company for assistance. If it’s caught early, a true same day may be possible. 

If payroll was processed as all live checks, you would print or receive live checks for the payroll. If payroll was not processed as all live checks, check the timing on the processing. If the time is before 9 am, posting deposits may not have happened, or there may have been a delay with the federal reserve. When the time is after 9 am, reach out to the processing company to confirm files have been sent, and that there is no delay with the federal reserve posting deposits. 

Direct Deposit Issues

Your employees want to be paid on time as expected, error-free. Dominion believes the best way to reduce payroll errors is to use a single-source software solution. With Dominion, you have your payroll, time and attendance, and other HR processes streamlined together on the same platform. An all-in-one payroll solution improves accuracy, cuts dual-entry, and makes your time spent on payroll more efficient. This increases the likelihood that payroll and the information provided by your employees will be correct and error-free.

 

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