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:

• All Online Payroll - NSF Holds

• Payroll account suspensions, security checks risk management

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