How do i refund an employee if income tax amount was over held

You can add a reimbursement item in the additional pay section to refund your employee, blatremo.

Here's how:

1. Go to Payroll, and then select the Employee you want to edit.

2. Scroll down to the Additional pay types section, then select +Add in the upper right corner of the table. 

3. In the Pay types section, enter Reimbursement, and fill in the necessary details. If there's already a reimbursement listed, you can add another one by entering +Another Reimbursement type.

4. You can either enter a default amount that you want to refund or leave it bank, and add the amount later when processing payroll.

5. Select the pay period when you want the reimbursement to show on the employee's paycheck. For one-time adjustment, make sure the Effective pay period and End pay period dates are the same

6. When you're finished, click Save.

Once done setting up the reimbursement pay type, you're now ready to refund your employee. You can run your payroll as you normally would, and the reimbursement amount will be included in the employee's paycheck.

Lastly, you can also reach out to our Live Payroll Support team for further assistance. Given that this is a public forum, they have the tools and access to provide real-time assistance through screen-sharing session.

Feel free to reply to this post if you have other QBO-related questions.