Direct Deposit Payments Made in Error
Payroll/Annuity Reversals
A payroll or annuity reversal includes 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 by submitting the Direct Deposit Reversal Request form (74-191).
- 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. 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 Reversal Requests for more information.
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. The deadline to process a reversal request cannot be later than four banking days from the settlement date of the 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 from reversal requests 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.
Example:
This example is for an erroneous monthly payroll payment processed in May 2023 with a payday of June 1, 2023. Refer to the Payroll Due Dates and Direct Deposit Schedule for payroll processing deadlines.
- A monthly payroll payment for an incorrect payee has an issue date (payday) of Thursday, June 1, 2023.
- The direct deposit deadline to process a monthly payroll is Thursday, May 25, four business days before payday.
(Monday, May 29, is excluded because it is a federal/banking holiday.) - The payment transmittal date is Friday, May 26, three business days before payday and the first date a reversal can be processed for this payment.
- The payment settlement date (payday) is Thursday, June 1.
- The deadline to process a reversal for this payment is Wednesday, June 7, four banking days from the payment settlement date (payday) of Thursday, June 1.
- The direct deposit deadline to process a monthly payroll is Thursday, May 25, four business days before payday.
- The agency processes a reversal request on Friday, June 2.
- The reversal request is transmitted to the ACH network on Monday, June 5.
- The settlement date of the reversal is Tuesday, June 6, two banking days from the date the reversal was processed on Friday, June 2.
- The DOPN deadline is Tuesday, June 6, the settlement date of the reversal, as required by NACHA.
Sunday | Monday | Tuesday | Wednesday | Thursday | Friday | Saturday |
---|---|---|---|---|---|---|
21 | 22 | 23 | 24 | 25 Direct Deposit Deadline |
26 Payment Transmittal Date |
27 |
28 |
29 BANKS CLOSED (Holiday) |
30 | 31 | |||
Reversal Request Begin Period |
Sunday | Monday | Tuesday | Wednesday | Thursday | Friday | Saturday |
---|---|---|---|---|---|---|
1 Payment Settlement Date (Payday) |
2 Reversal Process Date |
3 |
||||
4 |
5 Reversal Transmittal Date |
6 Reversal Settlement Date DOPN Deadline |
7 Reversal Request Deadline |
8 | 9 | 10 |
Reversal Request End Period |