Some payroll providers, like ADP, have the option to issue a prenote when an employee updates their direct deposit settings. A prenote is a test deposit (usually under $1) to verify that the bank account entered in payroll exists.
Because verifying a bank account can take some time, your payroll provider may send a paper paycheck for 1-2 pay periods while verifying the account. Once verified, payroll will begin to send paychecks by direct deposit.
What does this mean for my employees using Exhale?
If your payroll system has prenotes enabled, and an employee updates their direct deposit to connect to Exhale, they may receive a paper check for 1-2 pay periods while payroll verifies the new account information.
We recommend giving employees a heads up that they may receive their next 1-2 paychecks by mail, and ask them to verify that the mailing address in payroll is up to date.
How do I know if my organization uses prenotes?
If you have administrator access in your payroll system, you can typically find prenote settings under your admin settings in payroll. You may want to check your payroll provider’s help center for more information on prenote configuration.
Is there anything I can do to avoid my employees getting paper checks?
If you have administrator access in your payroll system, you can remove prenotes to avoid payroll sending paper checks when an employee's direct deposit is updated.
This means that if an employee enters either their personal bank account or their Exhale account numbers incorrectly in payroll, funds will be returned and they won't receive their paycheck until the issue is corrected.