Payroll funding: when debits happen and what to do if they fail

Understanding when payroll funds are withdrawn, and what to do if a debit fails, is crucial to maintaining smooth payroll operations. This article explains when funds are debited, what causes failures, and how to resolve them quickly.

When are payroll funds debited?

Payroll funds are debited from your business account on the payroll debit date, as shown on the Payroll Review screen before approval.

• This is the date the total payroll cost is withdrawn (including employee pay and remittances)

• It typically falls three business days before the pay date

• Funds must be available by 4:30 PM EST on the debit date to ensure successful processing

What happens if there are insufficient funds?

If the account doesn’t have enough funds at the time of debit:

• The withdrawal attempt will fail with a Non-Sufficient Funds (NSF) rejection

• Employee payments and CRA remittances may be cancelled

• You’ll receive a notification with the next steps

Common causes of funding failures

• Insufficient funds in the account at the time of debit

• Incorrect or outdated bank account details

• Banking issues such as closed or frozen accounts

How to resolve a funding failure

1. Ensure funds are now available in your payroll account

2. Contact support immediately to initiate recovery

3. In some cases, a wire transfer may be required if:

   • Payday is imminent

   • A reprocessed debit is not feasible

Once resolved, payroll may be reprocessed or reissued, depending on timing and method.