Dormant Returns Policy
To help ensure accurate reconciliation and timely resolution of any returned payments (Employee Net Pays or Contractor Payments) from your organization, Zeal has implemented the following policy for handling dormant ACH returns:
45-Day Holding Period
If an ACH payment is returned due to invalid or outdated worker banking information, we will hold the returned funds for up to 45 calendar days from the date of return.
Return Notification
You will receive a notification at the time the return occurs. This is to give your organization the opportunity to update the worker's banking information and allow Zeal to resend the payment within the 45-day window.
Refund After 45 Days
If updated banking information is not provided and the payment is not successfully resent within 45 days, the returned funds will be refunded to your organization.
Responsibility for Payment
Once a refund is issued, the corresponding payment(s) will be marked as prepaid in our system, and your organization will be responsible for appropriately disbursing those funds.
Notification of Sent Refund
The following is an example of the Refund notification your organization will receive:
We’ve issued a refund in the amount of $[Refund Amount] for a returned payment that could not be reissued due to missing or outdated worker banking information. Below is a breakdown of the payment details:
- Worker Name: [Full Name]
- Employer Check / Payment Group ID: [Employer Check or Payment Group ID]
- Check ID: [Check ID]
- Worker ID: [Employee or Contractor ID]
- Net Pay Amount: $[Amount]
- Return Date: [Return Date]
- Reason for Return: [e.g., Invalid Account, Closed Account]
This refund was issued in accordance with our Dormant Returns Policy, which allows for a 45-day window to update worker banking information. Since no update was received within that timeframe, the funds have been returned to you for further handling.
At this point, the payment has been marked as prepaid in our system, and you are responsible for disbursing the funds to the worker. Please follow the steps below:
Next Steps – Employer Action Required
Best Practice: First Send a Notice
Before attempting to issue a physical check, please send a certified letter to the worker's last known address that includes the following:
- A statement that their payroll deposit was returned
- Confirmation that they are still owed wages
- A request for updated banking or mailing information
- A deadline by which to respond (typically 15–30 days)
- Your contact information for resolving the matter
If the worker does not respond or the certified letter is returned, the next step is to remit the funds to the worker's state of residence in accordance with that state’s unclaimed property (escheatment) laws.
Please retain documentation of your outreach efforts, as this may be needed for compliance purposes.
Any question in relation to the Dormant Returns policy please Contact Zeal Support for further assistance.
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