Background
Patriot Software processes direct deposit funds on the payroll’s designated pay date. When you run payroll, Patriot withdraws the net pay from your business bank account in advance and deposits it into employees’ accounts to arrive on the specified pay date. You can confirm payroll timing and details in the Direct Deposit Details Report by going to Reports > Payroll Reports > Direct Deposit Details .
If an employee or contractor did not receive their direct deposit on payday, common reasons include an incorrect bank account number in the software, insufficient funds in the business bank account, or misunderstandings about payroll timing.
If you’re asking, “Why didn’t my employee get their direct deposit?” here’s the key thing to know: it can take up to 3 business days for Patriot to be notified by the bank that a direct deposit failed, and why.
Patriot Software does not offer instant or same-day employee payments. An "instant payment" refers to a payment your bank sends to Patriot to fund payroll, ensuring employees are paid on the next business day. Direct deposits run through the Automated Clearing House (ACH) network.
A failed direct deposit for one employee does not affect other employees' direct deposits. Each transaction is processed independently, ensuring that payroll for other employees proceeds without disruption.
Common Causes for Failed or Late Direct Deposit
Delayed direct deposit-- Employee bank account closed or inaccurate
In some cases, the bank can locate the correct account and re-route the deposit. When that happens, the deposit may still be delayed by up to 3 business days. The bank will update the account number and send the correction back to Patriot.
If this occurs, the bank may charge a nominal fee, which is passed through to you on your next monthly statement. See the Direct Deposit Fee Schedule for details.
If the bank cannot locate the account number (or the account is closed), the deposit will fail.
Depending on the bank, it may take up to 3 business days for Patriot to receive the failure notice and the reason. You can then choose how to resolve the failed deposit in the software. If the bank does not reject the deposit and the funds are posted to an incorrect account, the employee must work with their bank to recover the funds. Additionally, you will receive email notifications alongside in-account banners when a deposit fails, providing instructions to resolve the issue.
As soon as Patriot receives a notice of a failed employee deposit from the bank, you are notified in the software.
What you can do next in the meantime:
Request a trace ID from our Support team for employee direct deposit issues. You can give it to the employee or contractor so they can follow up with their bank.
Verify the account on file using our Bank Account Verification tool. See the help article “Verifying an Employee Bank Account Number” for steps.
💡Tip to prevent this in the future: Have employees and contractors add or update their direct deposit info in their portal. It reduces typos and keeps sensitive banking details out of your hands (always a win).
See “How to Add or Update Direct Deposit Accounts” for employees, and “Add or Change Direct Deposit Info in the Contractor Portal,” for more information.
2. Missing employee bank account information at time of payroll run
If an employee’s bank account information is missing at the time of payroll processing, the system will default to a check payment. Employers are responsible for issuing the check, either by printing it from the software or writing one manually.
To resolve this, add the employee’s bank account details in Patriot Software under Payroll > Employee List > [Employee Name] > Direct Deposit > Add Account. Once saved, future payrolls for that employee will be processed via direct deposit. For the current payroll, handwrite a paycheck, or void the payroll and re-run it with direct deposit once the bank information has been entered.
How to Resolve a Failed Deposit Notification
Log in to your software account and go to the Payroll Overview page.
If the bank notifies us that a direct deposit failed, you’ll see a notification in the software for each failed deposit. You’ll need to resolve each instance individually.
Click the “Fix Direct Deposit Issue” link.
The reason for the failed direct deposit will be shown
Click the appropriate radio button to resolve the issue:
Refund the payment/direct deposit back to your company bank account. You will pay the contractor/employee a different way via check, paper check etc.
Either you or the employee or contract will need to update the bank account information to use direct deposit for future pay.
Resend the payment to a new bank account for the employee/contractor.
Choosing to resend to a new account will display fields to update the employee/contractor bank account.
💡 If you already updated the incorrect bank account for the employee/contractor before the software notified you with the correction model, you will need to delete the employee banking information, and re-enter it to satisfy the notification.
Redirect payment to one of the employee’s other bank accounts — (for employees and only if there is more than one active bank account on the employee file.)
Click Resolve Direct Deposit.
💡 Additional Resolution Options:
Issue a Paper Check: Provide the employee with a paper check for the net pay amount.
Void and Rerun Payroll: Void the original payroll, correct the employee's direct deposit information, and rerun payroll for that employee. Ensure that only the affected employee is included in the rerun to avoid impacting other employees or creating duplicate payments.