What do I do to recover a payroll direct deposit that deposited to the wrong bank account?

I'll assist you on what you need to do to recover a direct deposit payroll, DP1965.

When your employee's direct deposit banking details were entered incorrectly, either you or your employee should reach out to the receiving bank to see if the wrong account is active or not.

If the incorrect bank account exists (it deposited successfully), request a direct deposit reversal 5 business days from the pay date (the paycheck date counts as the first day) but this doesn’t guarantee that the funds will be recovered.

1. Wait until the reversal is completed.
2. You can pay your employee with a regular check while waiting for the reversal to be completed.
3. Once you already have the result, update your employee’s bank account.

If the invalid account doesn't exist or closed, and it was confirmed that the deposit is rejected, perform the following:

1. Void the paycheck
2. Update the employee’s bank account
3. Recreate the paycheck and send a new direct deposit

For more details about the process above, please see this article: Handle a direct deposit paycheck that was not received by an employee.

Moreover, you can create a summary report if you wish to view your employees' totals and other payroll-related data. To guide you through the process, check out this article: Create a payroll summary report in QuickBooks.

Don't forget to revisit the Community if you have other payroll concerns or questions about handling direct deposit transactions. I'm always here to help you.