We have been seeing an increase in payrolls returned (bounced) due to NSF (insufficient funds). You can avoid the inconvenience and fees associated with a bounced payroll.

How you can avoid having your payroll bounce

Make sure you have sufficient funds to cover your payroll, taxes, and our invoice. The funds must be in your account the day before your check date, because that is when the funds are pulled from your account.

Problems sometimes arise when clients deposit checks, expecting the deposits to cover the payroll, Checks drawn on a different bank can take a few days to clear, so those funds might not be available from your bank in time.

We strongly recommend that you get overdraft protection with your bank so that if your bank account balance is low, your payroll can still go through.

What happens if your payroll bounces?

When your payroll bounces due to insufficient funds, the ACH company (NatPay) notifies us and we, in turn, contact you. 

You will need to wire the funds to NatPay, and the funds must be received by 3:00 p.m. that day. We will send you all the information you need to bring to your bank to initiate the wire, and we will need you to send us the wire’s confirmation number. Wiring funds is not the same as an EFT, and most banks require you to make this transaction in person at a branch.

What’s the cost if your payroll bounces?

A bounced payroll is very time-consuming for us to manage and costly in terms of fees charged to us by NatPay and our payroll software company. We are charged separately per item (payroll, taxes, invoice) and consequently we pass those fees onto the client. 

We would prefer not having your payroll bounce in the first place, so please look into overdraft protection and be mindful of your bank account balance.