Direct deposit: Troubleshooting and special situations

Find your issue below. For general information on direct deposit, see Direct deposit: How does it work? If you are paying contractors as well as employees, the same information applies to both.

My employee wants to split the deposit (two banks or direct deposit and a check)

We can do that. Ask the employee what dollar amount they want to go to the first bank, and then you can set up the remainder to go to a second bank account or to a check.

1. Go to the Employees tab.
2. Click where it says DD in the Pay Method column for the employee.
3. Set up the initial dollar amount for the first bank, and then enter the details for the remainder to go to the second bank or to a check.
4. Click OK.

My employee wants to change their bank

No problem. To change the employee's bank routing and account number:

1. Go to the Employees tab.
2. Click where it says DD in the Pay Method column for the employee.
3. Change the bank details and click OK.

My employee wants to use a savings or money market account

Ludt Payroll allows standard checking accounts, savings accounts, and some money market checking accounts for direct deposit. Some savings accounts might require a different account number to be used for direct deposit. Employees should consult with their bank on what account number to use for deposits made through Automated Clearing House (ACH).

My employee says they never received their direct deposit

This could happen if the bank account information was entered incorrectly or there was a problem with the employee's account. Check with the employee to confirm their bank routing and account numbers are correct. Most of the time, the funds are rejected and returned to the employer bank account within 2–3 business days after the pay date.

The employer may choose to pay the employee via check or other means. If the employer does so, there is a risk that the original transaction will still go through (and the employee will therefore be double paid). If the employee were to be double paid, one remedy might be to treat the double payment as a "payroll advance" and deduct the amount from the employees next paycheck. Here's information on how to add a payroll advance.

If the employee has not received the funds by midnight of the pay date, and you don't know what happened, you can request a direct deposit trace by contacting payroll@ludtpayroll.com.

I want to cancel a direct deposit

Follow instructions in Direct deposit: Can I get my money back after I approve a paycheck for direct deposit?

I need to reverse a direct deposit, but the money is already in my employee's bank account

There are times when money is credited to an employee through direct deposit and the transaction needs to be reversed. You might have significantly overpaid an employee, or accidentally paid an employee twice. However, we usually don't attempt reversals. The best practice is to collect the funds back from the employee, even if the employee was terminated. If you collect the funds from the employee, contact us to void the direct deposit paycheck from our system. Although we can’t completely delete the paycheck, we can insert a negative entry that will cancel it out for tax and accounting purposes.

We can only start a direct deposit reversal process after a trace is run on a transaction and ALL of the following criteria are met:

• No more than 5 banking days have passed since the settlement date of the transaction.
• You have no method of collecting the funds on your own from the employee and the employee is not willing to cooperate or return the funds to you.
• You agree to a $75.00 reversal fee.

Contact payroll@ludtpayroll.com to request help with this process.

I need to turn off direct deposit for just one check

Click here for instructions on creating a manual check instead for one payroll.

I want to know about using international accounts for direct deposit

Sorry, you cannot use international accounts for your company payroll or for your employees' deposits.

I got an error message that my direct deposit is larger than normal

If you are paying bonuses or reimbursing large expenses, you might go over your security limit. We set the security limit to help protect you from fraudulent Automated Clearing House (ACH) activities. The limit is based on your average payroll.

To fix this problem, you can try to change your payroll totals so you are under the limit. For example, you could pay bonuses by check rather than by direct deposit. Or you have the option to request a higher limit. See Direct deposit: Security limits for information on how to request an increase to your security limit.