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Frequent Explorer *
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How do I properly enter an NSF payroll check?

Hello,

 

I've never had an NSF payroll before. Can you tell me how to correctly make the entries for the returned check and the paid retry so I don't mess with the payroll tax liabilities. 

QBO payroll is still saying the direct deposit payroll is returned but it was paid out with the retry the other day...

 

Thank you! 

Best answer 04-24-2019 10:09 AM

Accepted Solutions
QuickBooks Team

Re: How do I properly enter an NSF payroll check?

Hello there, @emilee.

 

I'm here to share additional information on how QuickBooks Online handles recording of NSF payroll check.

 

Yes, you don't need to record any refund transaction at all. As mentioned by my colleague @FritzF, the recording will be done automatically.

 

For additional references, you may check these articles:

Fill me in if you have other questions about managing your payroll transactions. I'm always here to help.

7 Comments
QuickBooks Team

Re: How do I properly enter an NSF payroll check?

Hi, emilee.

 

Let me help share some information about the insufficient funds and guide you to the right support so you can get the help you need. 

 

If the return is due to insufficient funds, an automatic re-debit is processed on the day Intuit receives the return from your bank. These debits transactions are sent to your bank at 5 PM Pacific Standard time.

 

Additionally, the account is put on hold for five business days while we wait for confirmation from our bank that funds have posted successfully. I encourage you to contact our QuickBooks Online Payroll Support Team so they can take a look at the status of your payroll account. Once they verify that the funds are in our account, they will remove the hold on your account.

 

Here's how you can contact our customer support:

  1. Sign in to your QuickBooks Online company.
  2. Select Help (question mark icon) at the top right.
  3. Select Contact us to connect with a live support agent.

For additional reference, you may visit these articles:

Fill me in if you have additional questions about the payroll tax. I'm always here to help you out. Wishing you and your business continued success. 

Frequent Explorer *

Re: How do I properly enter an NSF payroll check?

@JanyRoseB , thank you but QB Payroll has been contacted and the account resolved. This question was about how to make the accounting entries. Smiley Happy

QuickBooks Team

Re: How do I properly enter an NSF payroll check?

Thanks for getting back to us and for providing some clarification, @emilee.

 

Allow me to chime in and share information about insufficient funds (NSF) payroll in QuickBooks Online (QBO).

 

You don't need to make a journal entry for the returned check(s). As mentioned by my colleague @JanyRoseB , the system will automatically process a redebit for the NSF return, and the account will be put on hold for five business days.

 

Since you mention that it was already sent back, you'll be notified by email once the redebit is successful or not. When successful, the notification that says direct deposit payroll is returned will be gone.

 

For additional information about the NSF return/holds, check out this article: All Online Payroll - NSF Holds.

 

This should answer your concern. Please reach out in the comments if you have any follow-up questions. I'll be happy to help. Enjoy the rest of the day.

Frequent Explorer *

Re: How do I properly enter an NSF payroll check?

Thank you @FritzF !
So, I guess to confirm; when the transactions come in through my banking feed, I shouldn't post the return to "refunds" and the redebit to "wages"? It will automatically enter those entries?

 

Thanks again so much!

QuickBooks Team

Re: How do I properly enter an NSF payroll check?

Hello there, @emilee.

 

I'm here to share additional information on how QuickBooks Online handles recording of NSF payroll check.

 

Yes, you don't need to record any refund transaction at all. As mentioned by my colleague @FritzF, the recording will be done automatically.

 

For additional references, you may check these articles:

Fill me in if you have other questions about managing your payroll transactions. I'm always here to help.

Frequent Explorer *

Re: How do I properly enter an NSF payroll check?

@juVielL Thank you!

QuickBooks Team

Re: How do I properly enter an NSF payroll check?

You’re most welcome, @RyanR.

 

It makes my day hearing that QuickBooks is taking the stress out of business accounting for you. With the right tools, any business owner can take charge of their finances in just a few clicks and swipes of a finger.

 

The Community articles have tips on how to get the most out of the program’s features, ensure to check them out in your spare time.  Also, you can check the video tutorials: https://quickbooks.intuit.com/tutorials/.

 

I’m just a post away if there are any accounting and bookkeeping features you’d like to get more familiar with. Wishing you continued success!