FAQs About Reversals with Zenefits Payroll

A reversal is the process of sending a request to a receiving bank to reverse the original deposit transaction (pulling back funds from an employee that were sent via direct deposit through payroll). Typically this process is a banking remediation in response to a customer request.

Zenefits will only process reversals if the employee in question was paid in error and is no longer active with the company, or if the account the payment was sent to does not belong to the customer (e.g. employee entered wrong account information).

NOTE: Reversals must be requested within five business days of the ACH  effective date per NATCHA regulation. There is nothing Zenefits can do to reverse an ACH payment after the five business day cutoff.
There are extensive checks in the system to ensure the data entered into payroll is processed correctly. However, when the payrun is approved with inaccurate data or there is a change in an employment situation, a reversal may be requested. This guide will provide more information about what to expect throughout the process. 
When funds are sent to an employee’s bank account, the employee has the ability to move or use the funds. If the account balance is insufficient to fund the amount of the reversal, it will fail. The employee may also close the account before the reversal is processed which means the original transaction is irreversible. 

The Specialist you are working with will notify you via email directly after 5 business days about the success or failure of your request. 

If the reversal is unsuccessful, Zenefits will notify the account administrator that issued the original request of the result within 24 hours of receipt of failure notice.  

The employee can return the funds directly to the company through personal check or transfer. If you do receive the returned funds from the employee, request a correction to the employee's wages.

No.  Reversals of banking transactions do not impact wages, taxes, or any reporting associated with the pay run.  Zenefits can assist with a payroll correction to ensure the pay and tax records are adjusted as needed.

It will be up to the company administrator to explain to the affected employee why this is happening and what to expect throughout the process. Zenefits will not communicate to the employee on the company’s behalf. 

There is a $75 fee per file reversal to go through this process. This fee will be assessed whether or not the reversal is successful. 

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