Accidentally withheld too much federal income taxes - QuickBooks Enterprise
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.