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gpsaccting
Level 1

How do I reconcile the difference between a series of paper checks I paid an employee and the actual amounts calculated later in payroll?

I paid an employee with a series of paper checks ($1,000; $1,500; $1,000) before I had payroll set up. After payroll was set up, I input his hours and pay into payroll to calculate his actual pay and taxes, and selected paper check as the method. The total of what I paid and how much he actually was owed are off by about $34 (I overpaid him by $34). Now I have a bank reconciliation issue because the bank shows the $3,500 in checks and QB shows net payroll expense of about $3,466 in payroll. I know the paper checks should be considered an advance, but how do I record it as such and reconcile the accounts?
2 Comments 2
Anonymous
Not applicable

How do I reconcile the difference between a series of paper checks I paid an employee and the actual amounts calculated later in payroll?

Hello, gpsaccting. 

 

We’ll have to record the exact amount you’ve given to your employees in QuickBooks Online to avoid discrepancies when reconciling the account. To correct your records, I’d recommend editing the paychecks you’ve created in QuickBooks. Then make sure that these paychecks will have the same net pay amount as what you have issued.

 

Here’s an article on how to calculate deductions under your desired net pay amount: https://community.intuit.com/articles/1772048-net-to-gross-formula.

 

Also, you can deduct the employee’s overpayment on their next paycheck. For further information on how to reconcile an account, please refer to this article: https://quickbooks.intuit.com/community/Banking-and-bank-feeds/How-to-reconcile-accounts/m-p/186470.

 

Don't hesitate to drop by again if you need help with QuickBooks. We'll be around to help. 

oliver12929
Level 1

How do I reconcile the difference between a series of paper checks I paid an employee and the actual amounts calculated later in payroll?

Good one 

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