Direct Deposit REVERSAL
From time to time there will be the need to attempt to reverse a pending direct deposit. The need can arise from employees who
- Have been paid incorrectly including instances of employees being paid who have been terminated and already paid with a manual
- to incorrect information being applied to an employee’s pay statement, to employees who have been double paid for some other reason.
- Other reasons may exist, however, the above are the most common
If an employee’s pay statement needs to be voided, the best practice is to work directly with the employee as a REVERSAL is not guaranteed to pull the funds back. There are many reasons this could happen, but the most common, is that the employee no longer has the funds in the account and the REVERSAL would draft the employee into the negative. Should you wish to proceed with the REVERSAL, there are a few items to note.
Per the NACHA Operating Rules, ACH Originators who transmit reversing entries to correct erroneous credits or debits are required to notify the Receiver that the REVERSAL is being transmitted, including the reason for the REVERSAL. REVERSALS are to be received by the Receiving Bank no later than 5 business days after the settlement date of the initial entry. REVERSAL requests received more than 5 business days after the original pay date will not be processed.
- Once the REVERSAL has processed successfully, Würk will credit back the client funds. This process will be completed within 5-7 business days of REVERSAL being submitted
- Würk can process the request for the REVERSAL from the receiving bank; however, the Receiving Bank is not obligated to honor the request
- REVERSALS are not guaranteed as the employee can move or use the funds. If the account balance is insufficient to fund the REVERSAL, it will fail
- In the event a REVERSAL is unsuccessful, we will notify the Payroll Administrator that issues the original request within 24 hours of receipt of failure notice. At that time, the employee will need to return the funds directly to the company
Please Note: When completing the document there are two amounts that you will need to pull from the payroll records. The first is the transaction amount. This total is the net check amount being deposited in the employee’s account.
The second total is the Original Payroll Batch Amount. This total can be found by pulling the Payroll Recap & Funding report within the specific payroll file.
Once the report is opened you will need to locate the Direct Deposits Debited amount:
Step 3: A case will be generated with your ACH REVERSAL request and will be assigned to a support representative to complete a supplemental payroll that will be used as the direct deposit REVERSAL file.
Once the REVERSAL payroll has been completed, the case will be assigned to the Würk Money Movement and will verify all case details and follow up with the client in the event additional information or clarifications are needed on the uploaded REVERSAL Form to our banking partners.
Step 4: Würk Money Movement will initiate the direct deposit REVERSAL and will notify the client within 5-7 business days of the REVERSAL date, reporting on the success or failure of the REVERSAL.
Step 5: In the event that the REVERSAL is unsuccessful the responsibility will fall back on the client as per NACHA Guidelines. We are only able to attempt a single REVERSAL.