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Integrated Payroll - Failed Employee Payment Guide
Integrated Payroll - Failed Employee Payment Guide

What to do if payment to an employee fails.

Chelsie Pettit avatar
Written by Chelsie Pettit
Updated over a week ago

**Integrated Payroll is in a private beta at this time. Only users in the beta will have access**

How can payment to an Employee fail?

  1. If their bank account has been closed.

  2. If they provide an incorrect account and routing number

  3. In very limited circumstances, their bank encounters an issue.

When will payment to an Employee fail?
When we run payroll, we first debit the employer (ER) and then send credits to the employees (EE) and tax agencies. If and when the credit to the EE fails, we receive a notification that our credit has been “returned.” In the same timeline as all ACH payments, employee credit payments will initially complete, then fail up until three banking days following initial completion. 

How can the employee accept a retried direct deposit payment?

  1. If their bank account has been closed or the account information they provided was inaccurate, they will need to add a new bank account, and can then retry the failed payment to that bank account.

  2. If their bank account is correct and is still open, it is very likely there is an issue with the employee’s bank itself. In these cases, reach out to Check to get additional information to raise to the employee’s bank.

How does this impact the ER?

Employers must choose whether they want to retry a direct deposit to the employee or to pay the employee manually via the method of their choosing (paper check, cash, Venmo, etc.) 

Direct Deposit

If the employer wants to pay their employee via direct deposit still, the employee should address their bank account issues and then the payment is able to be retried via the API or Console.


If the employer wants to pay their employee manually, the company is able to be refunded the employee’s net pay amount via the API or console.

For failed employee payments, the refund option is available

What occurs when an employee remains unpaid?

In the case that an employee cannot be reached, the funds will be returned to the company after three failed attempts.

What's Next?

Check out all of our resources for integrated Payroll in the Master Guide!

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