Direct Deposit Payments Made in Error
Payroll/Annuity Reversals

A payroll or annuity reversal applies to payments for:

• Supplemental payrolls (non-bimonthly, non-monthly).
• Bimonthly payrolls.
• Monthly payrolls.
• Supplemental annuity payments (non-monthly).
• Monthly annuity payments.

The reversal process for erroneous payroll and annuity payments differs from the process for vendor/travel reversals.

• An erroneous payroll payment should be canceled via the appropriate statewide payroll system before the payment is transmitted to the automated clearing house (ACH) network. The cancellation deadlines are listed in Payroll Due Dates and Direct Deposit Schedules (FPP E.030) under the column Last Day Payrolls Process for DDEP & Deadline for DDEP Cancellations. If payments are not canceled by these dates, a reversal may be requested.
• If an erroneous monthly annuity payment has not been transmitted to the ACH network, it should be canceled via the 44 Single Payment Cancellation screen in the Uniform Statewide Accounting System (USAS). The deadline to cancel an erroneous annuity payment is the day before the transmittal dates on the D62 Payroll Date Profile screen in USAS.
• Erroneous supplemental payrolls and supplemental annuity payments are not eligible for cancellation before transmission and require a reversal.

Once an erroneous payroll or annuity payment has been transmitted to the ACH network, a reversal request may be submitted.

Each agency is required to process its own reversal requests via the Direct Deposits – Reversals and Reclamations (DDEP) web application. See Instructions for the DDEP Web Application for more information.

The Direct Deposit Reversal Request form (74-191) should only be submitted if the agency is not able to access DDEP to process its own reversals. The agency must explain why it is not able to access DDEP.

Reversal requests are only allowed for the reasons specified by the National Automated Clearing House Association (NACHA). NACHA also requires that the payee be given notification of a reversal and sets a deadline for the date of payee notification (DOPN). See Payee Notification for more information.

Reversal Begin/End Dates

• Begin Date: A payroll or annuity reversal request may be processed beginning on the business day after the payment’s issue date displayed on the Payee Payment Information (PYWRNT) screen or beginning on the date the payment is transmitted to the ACH network. DDEP displays this date in the PAYMENT TRANSMITTAL DATE field for each direct deposit payment.
• End Date: The deadline to process a reversal request cannot be later than four banking days from the settlement date of the payment. DDEP displays this date in the PAYMENT SETTLEMENT DATE field on each direct deposit payment. The settlement dates for payroll and annuity payments are:
  • Bimonthly and monthly payrolls – The pay dates listed on Payroll Due Dates and Direct Deposit Schedules (FPP E.030).
  • Supplemental payroll and annuity payments – Two banking days after the payment issue date displayed on the Payee Payment Information (PYWRNT) screen.
  • Monthly annuity payments – The pay dates listed on the D62 Payroll Date Profile screen in USAS.

Funds received for successful reversals are credited back to the paying agency five banking days after the reversal process date and are deposited into the following default funds:

• Payroll payments – Fund 9014.
• Annuity payments – Fund 0980. To request a change from this default fund, see Successful Reversals.

Reports listing reversals processed each day are available for download. See Reversal/Reclamation Reports. Agencies can track the status of their reversals on DDEP. See Payment Search for more information.