Resolving R29 Return Codes and Unfreezing the EFT Application

Overview

This article explains what the R29 return code means, the initial steps to resolve it with the client's bank, and how to request that the EFT Application be moved back to Accepted status when the return code has caused it to be frozen. Use this guidance when payroll tax payments are being returned with an R29 (Corporate customer advises not authorized) code and additional intervention is needed to resume EFT services.

Understanding the R29 Return Code

The R29 return code — "Corporate customer advises not authorized" — indicates that the client's bank has a debit block on the account, which is preventing tax payments from being debited. The first step in resolving an R29 is always to have the employer contact their bank and confirm that a debit block has been removed for the appropriate ACH company IDs so future payments can process successfully.

Step 1 — Confirm the Debit Block Has Been Removed

Before requesting any changes within the EFT Application, confirm the following with the client's bank:

  • The bank has confirmed that no debit block exists (or has been removed) for the ACH company IDs used for tax payments.

  • The client has provided their bank with the IrisSoftware ACH ID (Company ID) of 1790977000 and requested that it be added to the account's approved/allowed list (whitelist) for ACH debits.

  • The block applies specifically to tax payments and not only to direct deposits, since direct deposit ACH activity may use a different company ID and can pass through unaffected.

  • The client has requested that any relevant ACH company IDs be added to the account's approved/allowed list.

Step 2 — Request That the EFT Application Be Unfrozen

After a returned payment, the EFT Application status can move out of Accepted status, which will require a request to restore it. Once the client has confirmed the bank has cleared any debit block and whitelisted the IrisSoftware ACH ID 1790977000, submit a Change Request through the EFT Application to have the ACH moved back to Accepted status.

 

How to Submit a Change Request to Unfreeze the EFT Application

Follow these steps to request that the EFT Application be moved back to Accepted status:

  1. Open the E-Services EFT Application.

  2. Select Change Request.

  3. Choose one of the following Change Types:

    • Processing Days

    • Direct Deposit

  4. In the Notes field, request that the ACH be moved back to Accepted status so EFT services can resume. Optionally include confirmation that the IrisSoftware ACH ID 1790977000 has been whitelisted by the client's bank.

  5. Submit the Change Request.

     

Tips for a Smooth Resolution

  • Verify with the bank in writing that the debit block has been removed before submitting the Change Request.

  • When contacting the bank, provide the IrisSoftware ACH ID (Company ID) 1790977000 so it can be added directly to the account's approved list. This prevents future R29 returns caused by this specific Company ID being blocked.

  • Include any relevant details in the Notes field, such as the affected return date(s) and confirmation that the bank has cleared the block.

  • Continue to monitor upcoming tax payments and be prepared to schedule payments manually until the EFT Application is fully restored to Accepted status.

     

Key Takeaways

  • The R29 return code indicates that a debit block on the client's bank account is preventing tax payments from processing.

  • The first step is always for the employer to work with their bank to confirm the debit block has been removed for the appropriate ACH company IDs.

  • The IrisSoftware ACH ID (Company ID) is 1790977000. Providing this to the client's bank so it can be added to the approved/allowed list is the most direct way to prevent an R29 return.

  • Direct deposit ACH activity may continue to process even when tax payment ACH is blocked, because different company IDs may be used.

  • If the returned payment has caused the EFT Application to leave Accepted status, submit a Change Request through the E-Services EFT Application to have the ACH restored.

  • Use the Notes field on the Change Request to specifically request that the ACH be moved back to Accepted status.