Refund a payment

Refunds are possible for failed credit payments associated with funded payrolls.

A refund indicates that a payment will be completed off-platform by the company, and they will now bear the responsibility for paying that employee, usually by a check. The net pay funds collected by Check for this employee will be returned to the company within 1-2 banking days. Additionally, the corresponding parent payroll_item or contractor_payment will have its payment_method set to MANUAL.

We recommend relying on the can_refund field on the Payment object to guide whether a refund is possible.

🚧

Status Changes from Refunds

Refunding a failed payroll item or contractor payment sets payment_method to MANUAL and marks the item status as paid. If all items in the payroll are now complete, the parent payroll status will transition to paid. Status-change webhooks will fire for the item and, if applicable, the payroll, so ensure your automations and notifications handle MANUAL paid items appropriately.