If you contract with LBMC Employment Partners, LLC to process payroll for your company, but you are not a part of the LBMC Employment Partners PEO, it is your responsibility under NACHA guidelines to maintain direct deposit authorization forms for each of your employees (for each account) for a period of two years. The originating and/or recipient financial institutions are authorized to request these authorizations at any time if there are issues with the receipt and/or rejection of funds. Maintenance of this form protects you under NACHA guidelines and allows us to make credit and debit entries in the event a payroll adjustment is necessary. NOTE: An authorization to debit an account must be in writing or ‘similarly authenticated’.
LBMC Employment Partners, LLC will make any necessary changes to payee account information within six (6) banking days upon receipt of a Notice of Correction, a Notice of Change*, or before another entry is transmitted. However, the legal responsibility for response lies with you as the Originator of the transaction (payment).
The rules are different for returns. Returns must be processed by the receiving bank within 24 hours of settlement. Returns that are unauthorized beyond the 24 hours are your liability and any disputes may have to be settled outside of the banking network.
If the Receiving Bank receives a dispute claiming a debit was unauthorized, they must get a signed Written Statement of Unauthorized Debit from the account holder/employee.
*Notice of Change
- When ACH information is incorrect, a Notification of Change (NOC) is sent by the Receiving Bank requesting that future entries contain correct information. ACH Rules require that LBMC Employment Partners make the change within six (6) banking days of receiving the information from our financial institution, or before another entry is sent.
- The Receiving Bank warrants that the information they provide to us is correct.
- LBMC Employment Partners, LLC will notify you of any NOCs received on your behalf.
- LBMC Employment Partners, LLC may pass along any fines received based upon your non-compliance.
Should you have questions or concerns regarding your responsibilities under NACHA, please connect with our team today or visit the NACHA website at https://www.nacha.org.