Skip to content

TexPayment Resource

Note: To navigate this guide on a mobile device you must use the Table of Contents.

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.

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:

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.


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 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.
May 2023
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
21 22 23 24 25

Direct Deposit Deadline

Payment Transmittal Date



30 31      
  Reversal Request Begin Period  
June 2023
Sunday Monday Tuesday Wednesday Thursday Friday Saturday

Payment Settlement Date

Reversal Process Date



Reversal Transmittal Date

Reversal Settlement Date

DOPN Deadline

Reversal Request Deadline
8 9 10
  Reversal Request End Period