A direct deposit refers to a transaction in which a sum of money is transferred directly from one account to another. But if in case incorrect information is passed within your books then you may want to know how to cancel and stop direct deposit in QuickBooks.
It is a basic transaction that every organization needs to record in its books. If you don’t already know this then you should continue reading. A direct deposit is mostly used for paying contractors, subcontractors, and employees. This is a payroll-specific task. Direct deposit has several advantages, the biggest one being cost efficiency.
Comprehensive Guide on Undoing or Reverse Direct Deposits in QuickBooks
You might be able to ask for a direct transfer to get the money back if you unintentionally paid your employee twice or the wrong employee. You have five business days (US) or four business days (Canada) from the pay date to request a direct deposit reversal. However, this does not ensure that the money will be retrieved.
Step 1: Determine when to request a reversal
You may ask for a reverse in case:
- In compliance with ACH or EFT laws is the reason.
- Due to the $75 direct deposit reversal fee, the total is greater than $50.
- There was no objection to the direct deposit paycheck.
- It occurs within four banking days (Canada) or five banking days (US) of the pay date.
- You must still find the bank account in the employee’s profile before you may reverse funds from it.
Work with your employee to get the money returned directly from them if you don’t fulfill the requirements listed above or you don’t want to pay the $75 fee.
Step 2: Submit a reversal request
Check to see if the original paycheck was accepted. Send your request between the third and fifth days following the date of your paycheck. There is no need for a reversal if it is rejected. You will receive the money back in your bank account.
To make a request, you can follow the steps mentioned below.
- You have to open the Direct Deposit Reversal form.
- Then you have to select Add Request.
- Fill out the necessary details and transaction information.
- Then you have to select Save.
- You can void the paycheck in your payroll records after the reversal has been accepted.
Step 3: Check the result of the reversal request we sent to your email
Your request will be reviewed, and you will be informed whether it was approved or denied. To get the result it will take up to 9 banking days. Your request will be returned to you through email along with a list of the necessary corrections if something is missing. We will review the request once more after you save the changes. In more complex situations, an agent might get in touch with you to help.
The reversal will be rejected and no money will be recovered if the whole direct deposit amount isn’t present in the contractor’s or employee’s bank account.
Reversal Complete: Direct Deposit Issue Resolved Successfully
If your request is approved, you will get an email. Your account will be credited with the money that was taken out of it by your employee. From the day your request was accepted, this process can take up to 14 banking days.
Void the paycheck once you receive your money back
For up to 60 days, an employee or contractor may contest the reversed decision. Intuit reserves the right to debit your business’s bank account for the disputed amount if a reversal is contested and money has already been repaid.
Failed Direct Deposit Reversal: Understanding Common Causes and Solutions
Do not void the paycheck if you get an email stating that the request was unsuccessful. The gross earnings are legitimate because the worker or contractor received the net payment.
Get in touch with the worker or contractor directly to get a refund. You can void the paycheck after you receive the money back.
QuickBooks Direct Deposit Cancellation
Banks use the ACH (Automated Clearing House) to validate and complete the direct deposit payment initiated by the employer. The ACH is responsible for handling everything regarding the payment. Once a request reaches the ACH, it cannot be canceled. Similarly, if you’ve initiated the payment through QuickBooks, and the deposit request has reached the ACH, then it will be impossible for the transaction to be canceled.
Steps on How to Cancel Direct Deposit in QuickBooks
If the transaction hasn’t reached the ACH, then follow the steps provided below to the status of the payment request.
- From the top menu bar, select Employees
- Choose My Payroll Service
- Click on Account/ Billing Information
- Log in with your account id and password
- Open the direct deposit section and then select View Payroll Activity
- In the payroll transmission option, you’ll be able to view the status of the paycheck you want to cancel.
If the transaction hasn’t been completed
- Log into QuickBooks payroll with an administrator account.
- From the top menu, select Employees.
- Click on Edit/ Void Paychecks.
- A new window will appear. Filter and search for the paycheck you want to cancel. QB provides multiple filter options that facilitate the search.
- Select the check you want to cancel and click on Void.
- Confirm that you want to void the check by selecting Yes in the confirmation dialogue box.
- Now we need to send the request over through the payroll service. For this, we’ll once again go to the Employees option from the top menu bar.
- Click on Send Payroll Data.
- Select Send. QuickBooks will attempt to connect to the network and send a request for the cancellation of the check.
- In fact, if you make any modifications to the paycheck, do not forget to send the request over with this option.
- The changes would not reflect and the transaction will be authenticated.
When all is done, pat your back as you have successfully answered your query on how to cancel direct deposit in QuickBooks.
You can go into the records and check whether or not the check has been voided. In the information provided for the paycheck, you’ll be able to spot the information about the void and cancellation of checks. Once this request is sent by QuickBooks, it cannot be reversed. If you want to continue with the payment, you’ll have to submit a new paycheck.
How do I Stop Direct Deposit
If the transaction request has not reached the ACH yet, then you can easily cancel it by following the methods mentioned in this article.
It takes up to 2 days for the banks to clear the paycheck or the electronic transfer request. Usually, after two days, the transaction is completed at 5 PM, Pacific time. Hence, you can cancel your transaction anytime before that.
The Send Payroll Data, option contains all the information about each voided check.
You can try sending the void request again through QuickBooks. By doing so, your request will be sent once again. Also, please make sure that your internet connection is working properly and that the user account you’re logged in through has the privileges to edit and void checks in QuickBooks.
Hope you are now able to fix your issue i.e. how to cancel Direct Deposit in QuickBooks and set up QB payroll direct deposit form. If you contact us before the check has been submitted to the ACH, we’ll cancel your paycheck for you. To know more, feel free to contact us. But if you are still facing a problem then you should get yourself connected with QuickBooks Consultant.
By When can I Cancel a Given Paycheck?
You can cancel a paycheck only before it is sent to the ACH (Automated Clearing House.) A paycheck is usually kept with the bank for two days before being sent to the ACH. Before that, you can easily cancel the paycheck with the information provided above.
What is a Good Time to Reach Your Technical Consultant Team?
Our QuickBooks Pro-advisor Consultant team is available round the clock to resolve issues faced by users such as you. If you want to cancel a paycheck, we’ll recommend that you reach out to us as soon as possible.
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