Understanding Failed Payroll Fundings
A failed funding occurs when your bank account declines to cover a payroll/tax debit for a given payroll. These can have severe consequences such as delayed payrolls and even account suspension. Please read this article in full to understand the implications of a failed funding, how to fix a failure, and how to prevent them so you can continue with smooth operations.
Using ACH blocks? Whitelist our IDs to ensure smooth payroll operations
If you've set up ACH blocks with your bank, you must whitelist Warp to run payroll. An ACH block is one of the more common causes of funding failures, especially if you use Mercury or Brex as your bank.
To avoid failed fundings (and delays to payroll), companies must whitelist all of the below ACH IDs.
For US Payroll
1209306000
942875288L
For Global Payroll
0514672353
0473346175
What happens if you fail to fund a payroll?
A failed funding is like a bounced check. Think of it as - you've authorized and instructed a bank to withdraw funds for a give payment, so the bank goes and debits those funds, and if the money is not there or your bank refuses to honor the payment for some reason, the withdrawing bank will take an issue with that.
This is standard procedure in all of US banking, and is same across any payment or payroll platform you use.
When you fail to fund a debit, a few things happen as a result
Payroll delay: With a failed debit, your expected payroll will not go out in time and your team will be late to receive their paychecks. Due to federal and state laws, missing payroll can have severe consequences, and we strongly recommend avoiding payroll delays.
Bank ACH Failure Fee: A $100 fee will be charged by our processing bank. This fee is not up to Warp, it is charged by the bank, and is the same across every payroll platform.
Payroll Access: Your ability to process payroll will be temporarily blocked until you have resolved the funding failure.
Processing Speed Downgrade: Your access to next-day and 2-day payroll processing will be suspended for a period of time.
Autopay Disabled: If you're using Autopay, this feature will be automatically disabled after a funding failure and you will need to explicitly approve future payrolls.
❗ Account Suspension
Upon reaching 6 failed fundings, our banking partner will terminate your payment services access, which will result in the termination of your Warp services. This is not something that Warp can control or change, and is also standard practice across all major payroll platforms. It is important to keep your company bank account sufficiently funded for payroll.
Required Funding
Your bank account must have enough funds to cover payroll. The exact Withdrawal Amount is displayed for every payroll before processing. This is the sum of all Net Pays and Employer and Employee Taxes.
Critical Deadline
Ensure full funding is available by 4pm PT on your scheduled debit date in Warp.
Resolving a Failed Funding
If a funding failure occurs, you will receive a notification and wire transfer instructions will appear on your dashboard. Following these wire instructions will help expedite the resolution of your failed funding and get your account back in Good Standing
💡 Tips to Prevent Failed Fundings
Use Plaid to connect your business account for secure, accurate bank details
Maintain sufficient funds in your business bank account
Set up auto-transfer rules in your bank account to automatically fund it when balance drops below a threshold
Verify sufficient funds are available before approving payrolls
Whitelist our ACH IDs if you use the ACH block feature in your bank account.