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ajm01998
Level 3

Accidentally paid employee using Bill Pay

I didn't realize that one of our contractors became an employee, and I paid her by entering a bill for the amount that we would have owed her under our prior contract and then paid the bill using the bill payment function.

 

So instead of getting biweekly paychecks with a salary, she got a monthly check as if she were a vendor, and it didn't have any taxes withheld or other normal payroll items.

 

The cleanest, easiest way for me to fix this would be for her to pay us back the money we paid her and then for us to issue a paycheck for the total amount she earned as an employee.  But if we don't want to bother her, how would you recommend that we enter her payroll properly and also pay her just the amount that we owe her?

 

To make things a bit more complicated, the check that we did write to her included some amounts that were properly owed to her as a vendor (i.e., not based on services she rendered as an employee).

 

My idea right now is to print out her paychecks and then not give them to her until the cumulative net pay exceeds what we already paid her.  And then once it exceeds the amount paid, pay her one more check to bring the difference to zero.  From then on, we can just hand her the paychecks generated by QuickBooks.  Does anyone have any other ideas?

Solved
Best answer February 28, 2022

Best Answers
MirriamM
Moderator

Accidentally paid employee using Bill Pay

Hi there, @ajm01998.

 

I appreciate you providing detailed information about your concern.

 

I agree with your idea of printing the employee paycheck and not giving her until the cumulative net pay exceeds what you have paid. To ensure the best for your books, I recommend working with your accountant. They can provide recommendations for the process that fits your situation. 

 

If you don't have one, you can find an accountant near you. Visit this link to find accountants based in the US: https://quickbooks.intuit.com/find-an-accountant/. Just add your address in the Find a ProAdvisor field.

 

Additionally, let me share these easy-to-access help articles that will assist you in familiarizing the different tasks, features, and functions of QuickBooks Desktop: QBDT Self-help.

 

If I can be of any other help, please don't hesitate to insert a comment below. I'm always here to answer it for you. Have a great day.

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2 Comments 2
MirriamM
Moderator

Accidentally paid employee using Bill Pay

Hi there, @ajm01998.

 

I appreciate you providing detailed information about your concern.

 

I agree with your idea of printing the employee paycheck and not giving her until the cumulative net pay exceeds what you have paid. To ensure the best for your books, I recommend working with your accountant. They can provide recommendations for the process that fits your situation. 

 

If you don't have one, you can find an accountant near you. Visit this link to find accountants based in the US: https://quickbooks.intuit.com/find-an-accountant/. Just add your address in the Find a ProAdvisor field.

 

Additionally, let me share these easy-to-access help articles that will assist you in familiarizing the different tasks, features, and functions of QuickBooks Desktop: QBDT Self-help.

 

If I can be of any other help, please don't hesitate to insert a comment below. I'm always here to answer it for you. Have a great day.

ajm01998
Level 3

Accidentally paid employee using Bill Pay

After thinking about it some more, I think I will create a payroll item to reduce the net pay by the amount that was paid with the AP check.  I think that will be the cleanest way to do it.

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