If there is an issue with an employee's receiving bank account, typically DP will receive a notification from their bank within three business days of the original check date. Three business days may not sound like a long time in abstract, but it can certainly feel like a long time when the employee is waiting for their pay!
Here are some common reasons an employee would not receive an expected direct deposit:
- The account is still being pre-note verified, and a live check was issued.
- The account information wasn't added as "Net Pay" or "Remaining Net", and a live check was issued.
- The account is closed (or frozen).
- The account number is invalid.
- The routing number is invalid.
- The employee's name does not match the account holder's name.
When we receive notification from the employee's bank that they are not able to post the deposit and will be returning the funds to us/you, we send an email to the person listed as the ACH Notification contact on your payroll account, letting you know the reason for the rejection and the amount.
Here are some common methods of getting pay to the employee in this scenario:
- Write the employee a check for the amount of the rejection,
- Run a payroll to re-deposit funds to a different account on the next business day, or
- Include the funds with the employee's next paycheck.
You may issue funds to the employee ahead of our getting an official notification from the bank, but understand that doing so carries the risk that the bank may do a delayed posting to the employee's account, which would result in the employee being paid twice. (We often recommend that the employee call the receiving bank to make sure they intend to return the deposited funds first.)
To inquire about a specific employee's direct deposit, please contact DP Customer Service.