Skip to main content
All CollectionsEmployersManaging Payroll
Payroll Voids and Reversals: A Guide for Employers
Payroll Voids and Reversals: A Guide for Employers
Ayush Sharma avatar
Written by Ayush Sharma
Updated over 2 weeks ago

⚠️ Before You Request a Void - Please Read Carefully

A payroll void has important financial implications you should understand

Each payroll consists of two components:

1. Net Pay (sent directly to employee)

2. Taxes (sent to various government agencies)

  • Once a payroll enters processing and funds are in flight:

  • Net Pay can usually be recovered through an ACH reversal from the employee's bank account

  • Tax payments may have already been deposited with government agencies

  • It's difficult to predict which tax payments can be refunded

  • Only unpaid taxes will be refunded to the employer during a void and reversal

Important: There is a $100 payroll void and reversal fee.

When You Need a Void

A payroll void is necessary when you discover an error in a processed payroll, such as:

- Incorrect payment amount to an employee

- Wrong bonus or commission amount

- Errors in deductions or withholdings

Understanding Payroll Voids

When you void a payroll, you're creating a new payroll record with negative amounts that offset the original incorrect payroll. Important points to note:

  • Voids can only be processed for payrolls that are in "paid" or "partially paid" status

  • A void does not automatically reverse money movement that has already occurred

  • Warp's support team will handle all necessary tax adjustments and amendments

How to Request a Void

1. Reach out to us via Intercom

2. Provide details about the payroll that needs to be voided

3. Our team will review and process the void

4. You'll receive confirmation once the void is complete

ACH Reversals

If an employee has received an incorrect payment, you may need an ACH reversal in addition to the void. Important details:

  • ACH reversals must be initiated within 5 business days of the original payment

  • Reversals are only possible for ACH payments (not instant payments)

  • You must have a valid reason for the reversal (such as incorrect payment amount)

Next Steps After a Void

Warp's support team will:

1. Process any necessary tax adjustments

2. Handle amended tax returns if the void affects a previous quarter

3. Refund any unpaid tax liabilities

4. Guide you through any needed ACH reversals

Did this answer your question?