Stop a Pending Direct Deposit
You may encounter situations in which a Direct Deposit needs to be stopped or reversed. In those cases, fill out the Stop Pending Direct Deposit Transaction form and fax it to FMS Customer Service (812-855-1879) or email to firstname.lastname@example.org as soon as possible. Central Payroll can request a stop or a reversal on a Direct Deposit record if there are at least two business days before the check date. Central Payroll can request a reversal on a Direct Deposit record if there are less than two business days before the check date.
Always remember that if a Direct Deposit transaction is stopped or reversed, the employee must be notified that they will not receive their direct deposit on pay day.
Reissue or cancellation of paper paychecks is done through Cash Control's Check Status and Stop Payment workflow document.
Stop, Reversal, or Reclaim?
Central Payroll can request a stop on a Direct Deposit record if there are at least two business days before the check date. A 'stop' implies that the transaction well be deleted before the file is sent out to individual banks. When a pending Direct Deposit is stopped, it is usually safe to issue a replacement check.
For example, let's say that the biweekly (BW) payroll closed on Monday, August 7. The Direct Deposit file will be created with an effective date of Friday, August 11. If necessary, it will likely be possible to stop a Direct Deposit transaction on Monday, Tuesday, or Wednesday (August 7, 8, or 9) and have the transaction returned to IU.
Central Payroll can request a reversal on a Direct Deposit record if there are less than two business days before the check date. A 'reversal' implies that the Direct Deposit funds will be returned. When a pending Direct Deposit is reversed, a replacement check may not be issued until IU received confirmation that the funds have been returned. Generally, the confirmation will be received after the original pay date.
Occasionally, IU will request a reversal after the check date. Requesting a reversal after the check date can only be done with the cooperation of the employee.
When a check is reversed, you will be notified when the employee's funds have been returned to IU. You can then initiate an adjustment voucher to correct the employee's pay, if necessary.
Check can only be reclaimed when the employee is deceased.