Direct Deposit Problem
srin...@my-deja.com
did a direct deposit of my bonus check. Two days after they did direct
deposit, they took back the money from my account without notifying me.
I came to know about this after a week of our payday.
When I called my payroll department, they told me that I was over paid
and so they took back the money from my bank account. It is OK to take
back the money that was over paid. They should have called me or sent
email what they did. I wrote several checks based on the balance I had
in my bank account. After taking back the money from my bank account,
they did not deposit the correct amount immediately. The excess amount
is about 3 days of my pay. Not a big amount. They should have taken it
in my next paycheck or bonus check.
Is this legal? Can an employer take back the money from the employee’s
bank account without any notification?
Please post your reply.
Sent via Deja.com http://www.deja.com/
Before you buy.
Tim Teichman
the employer can access your account to take money if they think they made
an error.
Tim
<srin...@my-deja.com> wrote in message news:8u1p3v$qg2$1...@nnrp1.deja.com...
Stuart Main
corporation I find this practice unheard of in Canada.
The automatic payroll systems in Canada, ADP and Ceridian, donot provide the
payroll manager with that kind of flexibility. I would suggest going to the
company you work for and demand them pay you the equivalent to any bank
charges you physically incurred.
Talk about an unfaithful organization....
Jim Hudspeth
srin...@my-deja.com wrote:
> My employer does direct deposit of our paychecks. Recently my employer
> did a direct deposit of my bonus check. Two days after they did direct
> deposit, they took back the money from my account without notifying me.
> I came to know about this after a week of our payday.
> When I called my payroll department, they told me that I was over paid
> and so they took back the money from my bank account. It is OK to take
> back the money that was over paid. They should have called me or sent
> email what they did. I wrote several checks based on the balance I had
> in my bank account. After taking back the money from my bank account,
> they did not deposit the correct amount immediately. The excess amount
> is about 3 days of my pay. Not a big amount. They should have taken it
> in my next paycheck or bonus check.
>
> Is this legal? Can an employer take back the money from the employee’s
> bank account without any notification?
>
> Please post your reply.
>
This seems highly improper to me.
I would question the bank's right to make this disbursement. They have a
fiduciary duty to you, which they very well may have breached.
In my opinion, the proper procedure would have been for your employer to
request that you refund any excess payment. If you refused, they might
very well have the right to withhold the difference from your next check.
I highly doubt they have the right to reach into your account and remove
funds.
--
Jim Hudspeth, CPA - http://home.att.net/~jdhcpa/mainpage.html - Washington,
USA
Associate Member, Association of Certified Fraud Examiners
Todd Boyle
>My employer does direct deposit of our paychecks. Recently my employer
>did a direct deposit of my bonus check. Two days after they did direct
>deposit, they took back the money from my account without notifying me.
That's outrageous. I would contact competing banks in your area and
find out if they behave the same way. If they do, consider internet
banks or banks in another country that work for the depositor instead
of the corporate clients.
Perhaps I'm mistaken... maybe there arent' any.
I sympathize with the payroll department; I wish I had a nickel
for every transaction batch I've created that had an error in it.
They should have put the replacement deposit in your account,
at the same time they jerked out the incorrect one.
Aren't you tempted to simply request the employer to switch you
from electronic deposit to paper check? Just to reassert some
sovereignty over the issue.
TOdd
* Todd F. Boyle CPA http://www.GLDialtone.com/
* tbo...@rosehill.net Kirkland WA (425) 827-3107
* XML accounting, webledgers, BSPs, ASPs, whatever it takes
Gary V. Deutschmann, Sr.
There is a way around that problem!
It costs $7.50 per transaction at my bank, if the amounts you are
talking about are substantial enough to warrant the procedure then do
it.
The account that I use anytime a DD comes along has a maximum balance
rider, each time the account crosses the maximum balance, all the
funds (except for 500 dollars) are transferred to an interest bearing
account. But on this account, it does not work in reverse. I have
another account I use for those Automatic Withdrawals, if it runs too
low, money is moved into that account, like overdraft protection with
backup so to speak.
In any case, when a DD is made, within only minutes the computers pick
up the overage and move it out of the account. Anyone attempting to
undo a DD due to an error simply gets the message, funds not available
for your request. Tee Hee Hee......
TTUL
Gary
Edward C. Bender
amount deposited into an employee's account WITH PROPER NOTIFICATION. If
you were not notified, the company MUST make good on ALL charges as a result
of the withdrawal.
Edward C. Bender
Multicom, Inc.
www.teammulticom.com
Tim Teichman <tim_te...@innocent.com.delete.spam.trap> wrote in message
news:pSgN5.15751$Wq1.8...@nnrp5-w.sbc.net...
> It depends on the DD contract you signed. It may (and probably does) say
> the employer can access your account to take money if they think they made
> an error.
>
> Tim
>
> <srin...@my-deja.com> wrote in message
news:8u1p3v$qg2$1...@nnrp1.deja.com...
> > My employer does direct deposit of our paychecks. Recently my employer
> > did a direct deposit of my bonus check. Two days after they did direct
> > deposit, they took back the money from my account without notifying me.
> > I came to know about this after a week of our payday.
> > When I called my payroll department, they told me that I was over paid
> > and so they took back the money from my bank account. It is OK to take
> > back the money that was over paid. They should have called me or sent
> > email what they did. I wrote several checks based on the balance I had
> > in my bank account. After taking back the money from my bank account,
> > they did not deposit the correct amount immediately. The excess amount
> > is about 3 days of my pay. Not a big amount. They should have taken it
> > in my next paycheck or bonus check.
> >
> > Is this legal? Can an employer take back the money from the employee's
> > bank account without any notification?
> >
> > Please post your reply.
> >
> >
Sarah Rosenthal
I Ieft an employer. There is no recourse other than to try and work with
your employer.