Paychex offers same day payroll reversals
On the first day Electronic Payments Association NACHA allows it, payroll and HR solutions provider Paychex has debuted same day ACH debits functionality for clients using direct deposit. This allows employers to reverse a payroll and have money debited from employee bank accounts on the same day in order to avoid any lag time.
Payroll reversals can be used in instances such as when a correction in the paycheck amount needs to be made. Previously with Paychex, reversed payrolls made on payday for direct deposit were processed the next business day, limiting the ability to successfully collect funds.
Under NACHA (previously the National Automated Clearing House Association) rules, employers have five days to perform any payroll reversal, pending any state laws. Same day ACH debits is part of an initiative led by NACHA to introduce faster capabilities in the payments industry. In September 2016, NACHA launched same day ACH for payments, allowing payments to process on the same day the transaction is initiated rather than on a future date.
“In this day and age, business owners want and expect their money to move faster. Paychex is proud to offer our clients same day ACH debits transactions on the first day it’s available in the payments industry,” said Paychex vice president of corporate strategy and product management Tom Hammond in a statement.