US Payroll: Auto Update Bank Account Details on NOC

This article explains the new enhancements in US Payroll that automatically update bank account details when a Notification of Change (NOC) is received from the bank and the updated employee bank verification flow.

What is a Notification of Change (NOC)?

A Notification of Change (NOC) is sent by the Receiving Depository Financial Institution (RDFI) when an account detail—such as account number, routing number, or account type—needs correction.

Even if the payment is successfully processed, NACHA regulations require that these corrections be applied within 6 banking days to avoid future delays or rejections.

Auto-Update of Bank Account Details

When a NOC is received:

• The system automatically updates bank account details for both employees/contractors and legal entities.

• A notification email is sent to the affected payroll admin and/or employee informing them of the change.

• Updates ensure consistency between Check and Keka and prevent downstream payment issues.

Employee Bank Verification – Updated Flow

The bank verification process has been updated to reflect changes in Check’s validation process.

Key Changes:

• Bank accounts are no longer verified at the time of addition.

• Verification occurs during the first successful payroll credit.

• The status “Verification Processing” has been renamed “Verification Pending”.

• Users can access the Manage Banks screen even if the payment method is set to manual.

Bank Addition

• Add new banks from the Manage Banks screen.

• Unsaved changes prompt a confirmation pop-up when closing the screen.

Net Pay Split

• Bank accounts with Verification Pending status can now be added to net pay splits.

• Earlier restrictions preventing unverified accounts from being included in net pay splits are removed.

Payroll Processing (Regular & Off-cycle)

• Payroll will use the bank account even if verification is pending.

• Previous logic defaulting to cash or paper check is removed.

Deleting Bank Accounts

Previously, if a bank account verification failed (e.g., incorrect routing number):

• Users could not add a new bank account due to duplicate validation.

• Failed bank accounts could not be deleted because Direct Deposit required at least one account.

With this update:

• Failed bank accounts can now be deleted even if the payment method is Direct Deposit.

• Failed bank accounts are automatically removed from net pay splits.

• A new pay split is created, and amounts are redirected to the last remainder bank account.

• When a new bank account is added, the system-generated net pay split is replaced automatically.

• If an employee has only one bank account and it fails verification, they are treated as having no bank account added during payroll.

• Bank accounts that fail verification can only be deleted, not edited.

• Unsaved changes in modals prompt a confirmation pop-up when closing.