ACH Return Code R01 Meaning – Why Payroll Was Rejected Due to Insufficient Funds
ACH return code R01 means insufficient funds. Learn why payroll or direct deposit failed, what happens next, and how long it takes to get paid after R01.
Taylor Reed
2/13/20262 min read
What Is ACH Return Code R01?
ACH return code R01 means “Insufficient Funds.”
It occurs when a bank attempts to process an ACH transaction, such as payroll or direct deposit, but the originating account does not have enough money to cover the payment.
In simple terms, the bank tried to send your paycheck, but the employer’s payroll account didn’t have sufficient funds at that moment.
Why Does ACH Return Code R01 Happen?
R01 usually points to a funding issue on the employer side, not the employee’s bank.
Common reasons include:
Employer did not fund payroll on time
Payroll funding deadline was missed
Payroll account balance was too low
Bank rejected the ACH debit attempt
Same-day ACH funding failed
Payroll batch processed before funds cleared
This is one of the most common ACH return codes in payroll systems.
Does R01 Mean My Employer Didn’t Pay Me?
Not exactly.
R01 means:
Payroll was attempted
The bank rejected the transaction
Funds were never deposited
Your paycheck is not lost. It was simply returned before reaching your account.
Is ACH R01 the Employee’s Fault?
No.
ACH Return Code R01 is almost always an employer or payroll funding issue.
It is not caused by:
Your bank account
Incorrect routing number
Closed account
Name mismatch
Those issues trigger different ACH return codes.
What Happens After an ACH R01 Return?
Once the bank issues an R01 return:
Payroll funds are sent back to the employer
Payroll system flags the transaction as failed
Employer must re-fund and re-submit payroll
A new payment date is generated
Most payroll providers require manual action to fix R01.
How Long Does It Take to Get Paid After R01?
Typical timelines:
1–2 business days if employer acts immediately
3–5 business days if payroll needs re-approval
Longer if employer delays funding
If no action is taken, payroll will remain unpaid indefinitely.
Will My Paycheck Be Reissued Automatically?
Usually no.
In most cases:
Employer must approve a re-run or off-cycle payroll
Payroll must be re-funded
Payment must be resubmitted
Employees often need to notify HR or payroll to trigger action.
What Should Employees Do If They See ACH R01?
Take these steps:
Contact payroll or HR immediately
Ask if payroll funding failed
Request a re-issued payment date
Ask if off-cycle payroll will be run
Document all communication
R01 vs Other ACH Return Codes
R01 – Insufficient funds (employer side)
R03 – Invalid account number
R10 – Unauthorized debit
R29 – Corporate customer not authorized
R01 is one of the fastest to fix if handled promptly.
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