cancel
Showing results for 
Search instead for 
Did you mean: 
mlgould68
Level 1

direct deposit

In trying to reconcile our checking acct, an employees paycheck who has direct deposit is showing up on the list, which it shouldn't be, and in the paycheck detail under "use direct deposit" the little box isn't checked like all the other checks, but if I check it, will it re-deposit that money again? 

3 Comments 3
Charies_M
Moderator

direct deposit

Hello there, mlgould68.

 

Let me share with you some insights when dealing with direct deposit checks.

 

Checking the box for Use direct deposit will re-deposit the amount. To resolve this, you can create a direct deposit offset item in QuickBooks Desktop. This process will prevent you from overpaying your employees.

 

Here's how to create a direct deposit payroll item:

  1. From the List menu, click Payroll Item List.
  2. Select the Payroll Item button and select New.
  3. Select Custom Setup, then click Next.
  4. Choose Deduction and select Next.
  5. Enter a name for the DD Offset payroll item and select Next.
  6. Leave the top two fields blank for Agency for employee-paid liabilities.
  7. In the Liability Account field, select Direct Deposit Liabilities to offset the negative amount found in the Direct Deposit Liabilities account.
  8. Select Next.
  9. Set the Tax tracking type to None and select Next.
  10. Make sure there are no taxes selected and select Next.
  11. Set Calculate based on quantity to Neither and select Next.
  12. Set Gross vs. Net to net pay and select Next.
  13. Leave the Default Rate and Limit fields blank and select Finish.

For more information about creating direct deposit offset in QuickBooks Desktop, you can visit this article: Create a direct deposit offset item.

 

That should do it. Feel free to reach out to me if you have other questions while reconciling your account. I'm always happy to help.

mlgould68
Level 1

direct deposit

thanks so much, so after following all these steps, what do we do next to offset it, so it doesn't deposit it again, and do you know how this would happen in the first place? when I go to print dd stubs out I don't click anything else

KhimG
QuickBooks Team

direct deposit

Allow me to join the conversation, @mlgould68.


I’m here to provide answers to your questions. 

 

It's possible that a system glitch or an internet connection issue is making this happen. Let's fix the problem by proceeding to the steps below.

 

After creating the payroll item, add it to the existing paycheck. Enter it below all other payroll items that appear in the Other Payroll Items field. Here’s how:
1.    Go to Banking and select Use Register.
2.    Select the bank account used for direct deposit payroll.
3.    Choose and open the paycheck by double-clicking it.
4.    Click the Paycheck Detail button and clear the Use Direct Deposit checkbox by selecting it.
5.    In the Other Payroll Items section under the Item Name column, select the Direct Deposit Offset item from the list. (If you get a warning message about Net Pay Locked, follow the prompt to unlock net pay).
6.    Enter the Net Pay amount as a negative value in the Rate column. (The amount on the Net Pay field in the Employee Summary section will now show the amount of 0).
7.    Select OK.
8.    Hit Save & Close.

 

 

 

 

 

 


Once done, a positive balance for this item will appear in your Payroll Liability Account. Make sure to remove it by doing a manual adjustment so it doesn’t show as a payable liability. To do this, follow the steps below:
1.    Click Employees from the top menu and select Payroll Taxes and Liabilities.
2.    Choose Adjust Payroll Liabilities.
3.    Make sure the Date and Effective Date matches the paycheck date that you edited.
4.    In the Adjustment is for, select Company.
5.    Select the DD Offset item used on the paycheck in the Item Name column.
6.    Enter the total amount of DD Offset as a negative value.
7.    Click Accounts Affected and select Do Not Affect Accounts.
8.    Hit OK on the Affect Accounts window, then OK on the Liability Adjustment window to save entries.


For more information, check out this article: Create a direct deposit offset item.


That should get you pointed in the right direction. Let me know if you have additional questions or clarifications. I’ll be here to help. Have a wonderful day ahead!
 

Need to get in touch?

Contact us
Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up