Troubleshooting direct deposit for payroll
Learn why your direct deposit account's status is on hold, or why a direct deposit payment to an employee was rejected.
- Why is the direct deposit account's status on hold?
- Why was a direct deposit to an employee's account rejected?
The direct deposit account status has a status of on hold because:
- You changed your direct deposit bank account, but the process is not yet complete.
- The bank account in Payroll Settings does not match the bank account for direct deposit. Either:
- Change the Payroll Settings bank account to match the direct deposit bank account.
- Request to change the direct deposit bank account for payroll.
- You changed your company's legal name or tax ID in Xero. Xero will email you about registering for direct deposit again.
- Multiple direct deposit bank account debits failed.
Click the Contact Xero Support button at the bottom of any Help page. Include your Xero organization name with your request. You'll need to log into Xero if you want to attach a file.
A payment to an employee is rejected because Xero cannot withdraw the money from the organization's direct deposit account, or the employee's bank returned the payment.
Xero cannot withdraw money from your direct deposit bank account
If Xero cancels a payment because it cannot withdraw all the money from the direct deposit account, contact your bank.
The employee’s bank returns the payment
If the employee’s bank returns the payment, the employee must contact the bank to determine the issue.
You may need to:
- Update the employee's bank account details or payment method.
- Pay the employee manually or by check.