We accidentally withheld more federal income taxes than an employee's W-4 indicated. The employee has already received the funds via direct deposit, so we can't void the check, but we have not yet remitted the taxes to the IRS. He has requested that we pay the funds to him rather than remit them to the IRS, but I can't figure out a way to cut a paycheck that has no gross pay and a "negative" federal tax withholding. Is this possible, or do I have to send the funds to the IRS and withhold fewer taxes in the next paycheck?
We are using QuickBooks Enterprise with Enhanced Payroll.
Solved! Go to Solution.
I have another way on how you can correct this and refund your employees, ajm01998.
We can create payroll corrections, then submit a reimbursement check to refund your Employee. But first, let's add a new payroll item. To do this follow the steps below.
Then, set up the new item:
Once done, recalculate your payroll data.
You can also read this article for more information: Refund an employee for a deduction that was over withheld. For future reference, you can use this article that will serve as a guide to help prepare your tax forms: Year-end checklist for QuickBooks Desktop Payroll.
Let me know if there's anything else that you need with your federal taxes. Don't forget, we're always here to get you covered.
I have another way on how you can correct this and refund your employees, ajm01998.
We can create payroll corrections, then submit a reimbursement check to refund your Employee. But first, let's add a new payroll item. To do this follow the steps below.
Then, set up the new item:
Once done, recalculate your payroll data.
You can also read this article for more information: Refund an employee for a deduction that was over withheld. For future reference, you can use this article that will serve as a guide to help prepare your tax forms: Year-end checklist for QuickBooks Desktop Payroll.
Let me know if there's anything else that you need with your federal taxes. Don't forget, we're always here to get you covered.
Thanks, that's a pretty good workaround.
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