Guide on Service Fees
Explore common service fees and implement best practices to minimize costs for employers.
This guide provides an overview of common service fees in the Check Agreement, along with best practices you can implement in your product flows to help employers avoid them.
Service fee | Historical average | Best practice |
Failed employee bank account validation or payment (per employee) | < 0.1% of employees per month | Happens when employees enter incorrect bank details. Encourage employees to link accounts securely via Plaid rather than typing routing/account numbers. |
Funding of payroll via wire (per wire payment) | < 1% of employers per month | Occurs when employers miss payroll approval deadlines. Send mobile or in-product reminders about deadlines to reduce reliance on wires. |
Attempted reversal of payment to employee (per employee) | < 0.1% of employees per month | Results from duplicate or incorrect payments. Recommend employers double-check details before approving payrolls and keep processes organized. |
Unsuccessful funds transfer from employer (per ACH return) | ~0.5–1% of employers per month | Usually due to insufficient funds (NSFs). Use payment webhook alerts to notify employers quickly. Provide guidance on cash flow management for repeated NSFs. |
Untimely tax filing where delay is not Check’s fault (per filing) | ~1–1.5% of employers per quarter | Occasionally caused by employer-side issues. Once resolved, filings must be reopened. Notify employers promptly about issues blocking filings. |
Tax returns filed for employers no longer using the service (per filing) | < 0.1% of employers | Some churned employers request filings. Proactively terminate inactive companies within Check. We can provide quarterly lists of inactive companies. |
Amended tax returns (per return) | ~0.5–1% of employers per year | Amendments are time-consuming and costly. Stay on top of compliance notifications and year-end trainings to prevent issues that require amendments. |
Printing and mailing W-2 and 1099s at year-end (per return) | 40–100% of employees who did not opt into paperless delivery | Forms must be mailed for employees/contractors who don’t opt into paperless delivery. If the employer has not opted into paperless delivery, we will print and mail forms regardless of the employee/contractor’s preference. Encourage both employers and their workers to opt into paperless delivery, and keep consent status updated in Console. |
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Last updated on September 1, 2025