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Giving an employee a refund for a payroll deduction

SOLVEDby QuickBooksQuickBooks Enterprise SuiteUpdated 1 month ago

If you've deducted too much for a non-tax payroll deduction, such as health insurance, you need to give the employee a refund.

If the employee is still on your payroll:

  1. Write a paycheque to the employee.
  2. In the Review or Change Pay Cheque window, leave the Earnings section empty. You can delete salary payroll items by pressing <Ctrl> + <Del>. For hourly payroll items, do not enter any hours.
  3. In the Employee Summary section, enter a positive amount for the appropriate payroll item.
  4. Select Yes in the message that QuickBooks displays and record the paycheque.

QuickBooks adjusts the liability for the payroll item when you write the paycheque. Do not enter a liability adjustment in addition.

If the employee no longer works for you:

  1. Use the Write Cheques window to write the employee a "regular" cheque.
  2. Adjust the liability for this employee for the appropriate period.

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