Does anyone know how to resolve an overpayment in payroll?

Hi Terry. If the paycheque is recent and hasn't been submitted to the CRA, you can delete or void the paycheck, and recreate it in QuickBooks to adjust the employment deductions.

Here's how:

1.  Head over to All apps, click the Payroll menu on the left, then hit the Overview or Employees tab. Look for and select Paycheque List.
2. Find the paycheck you need to fix and click the little dropdown arrow under the Action column.
3. Choose either Delete or Void Paycheck.
   
4. Confirm your choice when the prompt pops up and hit Save.

On the hand, you can add the number of hours accordingly from the employee's next paycheck to reflect the overpayment.

However, if the paycheque has already been submitted, I recommend reaching out to our live payroll support team. They can help you make these corrections accurately and our team's available hours can be found on our support page.

Additionally, you will need to contact the Canada Revenue Agency (CRA) to ensure any resulting refund is credited to you appropriately.

I’ve also included this guide to help you manage overpayments. Please note that while this article is written for the US version of the software, the same logic applies to your region.

Feel free to reach out if you have any other questions about setting up employee deductions. I’m always here to help!