Handle Failed Employee Payments in Zenoti Integrated Payroll
This article explains how to manage failed employee payments in Zenoti's Integrated Payroll (ZIP) system. It outlines common reasons for payment failures, details Zenoti's support process, and describes the available resolution options.
Overview
Employee payment failures typically occur due to issues with the employee’s bank account such as closed accounts or incorrect details and can impact their ability to receive pay on time. When a payment fails, Zenoti notifies you and pauses the employee's pay status. Zenoti then collaborates with you to either retry the payment or issue a refund, ensuring the employee receives their pay promptly.
Reasons for employee payment failure
An employee payment may fail due to:
A closed or inactive bank account
An incorrect or outdated account number
The bank’s inability to receive deposits (for example, due to restrictions or flags)
Zenoti notifies you of the issue and coordinates the next steps to ensure the employee is paid promptly.
Zenoti’s response to payment failures
When an payment fails:
Zenoti Operations team contacts you via email
The payment is flagged for review, without automatic retries
The employee’s pay status is paused until resolution
Zenoti collaborates with you to retry the payment or initiate a refund for off-platform payment
Self-serve payment resolution coming soon
Currently, all failed payment resolutions are managed by the Zenoti Operations team. Direct action within the product is not available at this time.
We are actively developing features that will enable you to:
View the failure reason directly in the payment details
Retry or refund the payment yourself
Track the resolution status within the product
These enhancements will be included in upcoming updates.
Resolution options
1. Retry the Payment
If the employee has a valid bank account (new or corrected), Zenoti can retry the credit payment. Once retried:
Funds typically arrive in 1–2 banking days
You receive confirmation once the payment settles
2. Refund the Payment
If you prefer to pay the employee off-platform (for example, by check):
Zenoti refunds the employee’s net pay to your bank account
The corresponding payroll item is marked as manual
Refunds take 1–2 business days to process
Note
Refunds are only issued if your payroll was fully funded. If not, the refund request will be declined.
Contact Zenoti Support
If an employee payment fails, contact payrolloperations@zenoti.com. We will assist you in resolving the issueby either retrying or refunding the payment.
Frequently asked questions
Q. Why did the payment to my employee fail?
A. Common reasons include a closed or incorrect bank account or the bank account is blocked or returned the deposit
Q. Can I see the failure reason in the product?
A. Not yet. Zenoti Operations team will share the reason with you. Future product updates will include this feature.
Q. Can I retry a failed payment myself?
A. No. Zenoti must manually initiate the retry. Self-serve retries will be available soon.
Q How long does it take for a retried payment to settle?
A. Typically 1–2 business days, depending on the bank and timing.
Q. Can I pay my employee by check instead?
A. Yes. Zenoti can refund the payment to your account so you can issue a check or use another off-platform method.
Q What happens to the employee’s payroll item after a refund?
A. It is updated to a manual payment status, indicating that Zenoti is no longer processing it.
Q. Who do I contact to take action on a failed employee payment?
A. Email payrolloperations@zenoti.com and we’ll guide you through the next steps.