Handle Failed Funding in Zenoti Integrated Payroll
This article explains what happens when payroll funding fails in ZIP, how Zenoti responds, and the steps you can take to resolve it. When a business funds payroll through Zenoti Integrated Payroll (ZIP), Zenoti initiates a debit from the business’s bank account. Sometimes, this debit may fail—usually due to account-related issues.
Overview
A failed debit can disrupt operations - delaying employee pay, pause tax filings, and putting the business out of compliance. This guide helps you:
Identify common reasons for funding failures
Understand how Zenoti handles failed debits
Follow clear steps to resolve the issue
Prepare for upcoming self-service capabilities
Find answers to frequently asked questions
Acting quickly minimizes business disruption and ensures smooth payroll processing.
Why funding payments may fail
Your payroll debit may fail due to:
Insufficient funds in your bank account
Incorrect or outdated bank account details
ACH authorization issues
A closed or restricted bank account
These issues can delay employee pay and halt your tax filings, potentially triggering penalties.
What happens when funding fails
When a funding debit fails:
Zenoti creates a support case and contacts you
For next-day payrolls, employee payments may still succeed
Zenoti marks your business as “not in good standing”
You won’t be able to run or preview payroll until you resolve the issue.
Tax payments are paused
Zenoti applies a $100 NSF (Non-sufficient Funds) fee
Repeated or unresolved may result in service downgrade or termination under Zenoti’s credit policy
Self-serve payment resolution coming soon
At this time, only Zenoti Operations team can resolve failed funding cases.
We are actively building in-product features that will let you:
View funding failure reasons in the product
Retry funding attempts with a click
Upload wire transfer details to quickly restore “good standing” status
These self-service features are coming in future releases.
How to resolve a failed funding
Option 1: Wire transfer (recommended)
Zenoti will send you secure wire instructions.
Once we receive your transfer:
We restore your business to good standing
We release all pending employee and tax payments
You can resume payroll operations immediately
Option 2: ACH re-debit
Zenoti can retry the debit from the same or a different bank account
ACH retries take up to 3 banking days to confirm
If the retry succeeds, we reinstate your payroll status and resume payments
Automatic retry attempts
Zenoti may automatically retry the failed debit if:
The retry occurs on business day 5 and day 10 after the original failure
The original failure returned with codes:
R01 (Insufficient Funds)
R09 (Uncollected Funds)
We attempt the retry at 8 PM ET
We don't charge a fee for automatic retry failures
We skip retries if you’ve already started a wire or manual retry
Get help with failed funding
If your payroll funding fails, email us at: payrolloperations@zenoti.com. Our team will:
Investigate the failure
Share secure wire instructions (if needed)
Initiate retry options
Guide you through restoring payroll operations
Frequently asked questions
Q. Why did my payroll funding fail?
A. The most common reasons include insufficient funds, incorrect or outdated bank details, blocked ACH access or a closed or restricted account.
Q. Will my employees still get paid?
A. Yes, in most next day payrolls, employee payments still succeed even after a funding failure.
Q. Can I fix this myself in the product?
A. Not yet. All actions must be done via Zenoti’s Operations team. Self-serve tools are coming soon.
Q. What’s the best way to resolve a failed funding?
A. Use a wire transfer. It clears within hours and avoids further delays or risks.
Q. Can I retry the debit from my bank account?
A. Yes. Zenoti can help you retry the debit using the same or a different bank account. However, ACH retries take 3 banking days to clear.
Q. Will I be charged a fee for failed funding?
A. Yes, a $100 NSF (Non-Sufficient Funds) fee applies per failure.
Q. What happens if I don’t resolve it?
A. You cannot run or preview payroll. Tax filings are paused. Zenoti may initiate collections and remove ZIP access.
Q. What are automatic retry rules?
A. Zenoti retries failed debits on day 5 and day 10 after failure—but only for return codes R01 and R09. There’s no fee, and retries won’t run if another fix is in progress.