7shifts Payroll: Failed Funding Guide

When you submit payroll with 7shifts, your business account is debited to cover employee wages, taxes, and employer tax obligations. Occasionally, this funding process can fail. This article explains why payroll funding failures occur when running payroll, how to resolve them, and the impact they have on your business, employees and payroll schedule.

How Payroll Funding Works 

• When you submit payroll in 7shifts, Check Technologies (our payroll processing partner) debits your business bank account. 
• If this debit fails, the bank notifies us, typically within 2-3 business days.

Consequences of Failed Payroll Funding

A failed payroll funding can disrupt your business operations and has the following consequences:

Impact on Payroll Processing

Financial Implications: 

• Tax Payment Delays: Tax payments related to the failed payroll will be held until the funds are recovered. This could lead to penalties or liens, which are your responsibility as an employer.
• Tax Filing Delays: Unresolved issues can delay end-of-year tax filings (W-2s and 1099s).
• Additional Fees:
  • A $125 return fee (inclusive of wire fees) is charged for each failed funding.

Common Reasons for Failed Funding 

Resolving Failed Funding

Once you've confirmed your payroll account is accurate and verified, contains sufficient funds, and/or you've whitelisted Check Technologies, you can proceed with retrying the debit. 

We strongly recommend resolving failed fundings via wire transfer for faster settlement. While you can retry the ACH debit within 7shifts, be aware that this may delay payroll.

Option 1: Wire the Funds

Option 2: Resubmit an ACH Debit

Steps to Resubmit the ACH Debit:

1. Resolve the Funding Issue:
   • First, ensure you've addressed the reason for the failed funding (e.g., deposited sufficient funds into your bank account).
   • Verify that the required funds are readily available in your account.
2. Access the Payroll Dashboard:
   • Log in to the 7shifts web app as an Admin.
   • Navigate to the Payroll tab.
3. Initiate Resubmission:
   • From the Payroll Dashboard, locate the pay period with the failed funding.
   • Click the more menu (three dots) next to that pay period.
   • Select 'View and Re-submit Payroll' and follow the prompts to retry the debit.

Failure Notification Timeline

• ACH transaction failures are typically communicated 1-3 business days after the debit is initiated.
• This delay is due to the ACH transaction clearing process, where the bank confirms or rejects the debit.
• You may see the failure in your bank account before our system receives the notification.
• You cannot resubmit the debit in 7shifts until the funds officially fail on payday.