If your payroll funding fails, it’s important to act quickly. Failed funding can delay employee payments, pause tax filings, and block future payroll runs.
This guide explains what happens and how to resolve it.
Why did my payroll funding fail?
A funding failure usually happens when we’re unable to debit your account for payroll.
Common reasons include:
Insufficient funds in your account
Your bank is blocking the ACH debit or limit exceeded
Incorrect bank details
What happens after a failed funding?
When a funding attempt fails, we immediately take steps to prevent further issues.
Payroll is paused
Direct deposits that haven’t been processed are put on hold
Some employees may be paid, while others may be delayed depending on timing
Tax filings are paused
Payroll tax filings and payments are paused until funding is resolved
This may result in penalties or late fees
Payroll is blocked
Your account is temporarily blocked from running additional payrolls
This is lifted once your account is back in good standing
How to resolve a failed funding
Recommended: Send a wire transfer
The fastest way to resolve a failed funding is by wire.
Wires are processed the same day
Your account returns to good standing as soon as funds are received
Employee payments can resume quickly
To avoid delays in paying your team:
Send wires at least 2–4 hours before the cutoff times
For same-day payroll, wires must be received by 4 PM ET on payday
For morning delivery, wires must be received by 5:00 PM ET the day before payday
If you wish to resolve a failed funding using this option, please reach out to us so we can share the wire details.
Alternative: Retry via ACH
You can retry the debit via ACH, but:
It can take several business days (average 3 to 5 days)
Employee payments will remain on hold during this time
Payroll may not be completed on the original payday
Manual payments
If you choose to pay employees outside of Plane (e.g. checks or manual payments):
Make sure those payments are recorded for tax purposes - please reach out to us so we can help you with this.
The payment mode will be updated to help update the payroll amount before we retry the funding.
What if funding isn’t resolved?
If funding is not resolved promptly:
Employee payments remain delayed
Tax filings are not completed
Your account may be restricted further
Collections processes may begin
Legal escalation may occur in some cases
Repeated failed fundings and account termination
Failed fundings are taken seriously.
After 6 failed fundings, your payroll services will be terminated.
This means:
You will no longer be able to run payroll through Plane
Outstanding balances may be sent to collections
You would need to move payroll to another provider
We strongly recommend resolving failed fundings as quickly as possible and avoiding repeated failures to prevent escalation.
How to avoid failed funding in the future
Ensure your account has sufficient funds between the payroll cutoff and the pay date. ACH debits can take a few business days to process, so maintaining funds during this period helps prevent failures.
Double-check your bank details
Confirm your account allows ACH debits
Act quickly if you receive a funding failure notification
Need help?
If you have questions or need help with your payroll, please contact our support team here or via support@plane.com. We’re here to assist.