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?
