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.
