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.