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FAQ: How should I handle a direct deposit that was returned due to a closed employee bank account?

If the bank informs you that one employee’s direct deposit was not processed and the payroll batch has already been updated, make the necessary changes to the employee’s bank information on the Direct Deposit screen in the Employee File and/or the applicable bank in the Direct Deposit Banks File, and then complete one of the following:

  • If the employee’s direct deposit that was returned was included on a direct deposit stub that contained only one direct deposit split, use the Replace/Reprint Checks option to replace the direct deposit stub by printing a check (on check stock).  When completing the Replace/Reprint Checks option for the direct deposit stub, be sure to select Check in the Replacement Check Type field and enter the new check number in the Replacement Check Number field.  For details on completing the Replace/Reprint Checks option, refer to the Replacing/Reprinting a Check topic in the Help File.

OR

  • If the employee’s direct deposit that was returned was included on a direct deposit stub that contained multiple direct deposit splits and only one direct deposit split was returned (not processed), manually write a check to the employee for the amount of the direct deposit that could not be processed (do not write the check from within the School Accounting System), and then if desired, the check can be manually entered into the Checks File Maintenance by completing the Check Type, Checking Account ID, Check Number, Check Date, Check Amount, and Entity ID fields.  (Note:  If using this method, when completing the check reconciliation for the appropriate checking account, keep in mind the original direct deposit will still be included in the applicable direct deposit total, and the manual check will only show if it had been entered in the Checks File Maintenance.)

OR

  • If the employee’s direct deposit that was returned was included on a direct deposit stub that contained multiple direct deposit splits and all of the direct deposit splits were returned (not processed), void the direct deposit stub using the Void Checks option, and then issue a check to the employee by calculating and updating an Extra payroll.