We had a payroll direct deposit returned to us due to an account being closed. The direct deposit was returned to our bank and now I am wondering how I give the paycheck to the employee since the original states cleared. Do I reissue a manual check for the amount owed to the employee and use the direct deposit liability account since the taxes are already ran through with the original/initial paycheck that was issued? Not sure how to address the fact of reissuing the paycheck correctly.
