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:
- Write a paycheque to the employee.
- 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.
- In the Employee Summary section, enter a positive amount for the appropriate payroll item.
- 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:
- Use the Write Cheques window to write the employee a "regular" cheque.
- Adjust the liability for this employee for the appropriate period.