I use an outside payroll service and then enter the payroll checks into QB manually. I had to give one of my employees a manual live check and I submitted the information to the payroll service for tax purposes. On the next scheduled payroll, they accidentally duplicated that check and sent me another. The employee is no longer with the company so I held onto the check. I reversed the check with the payroll service and the reversal showed up on the following scheduled payroll. My question is how do I enter this into Quickbooks? At first, I was just going to not enter the check at all because it got reversed. But in order to reconcile with the bank statement (because money was taken out of my account to cover the taxes and then returned to my account) I need to record something.
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"But I'm left now with a payroll check that will never be cashed."
Then you missed part of the entries. The Paycheck is the Net from a Gross Activity.
"I reversed the check with the payroll service and the reversal showed up on the following scheduled payroll."
Then All of this data, as Gross wages, employer tax expense, and Net Takehome, was offset. Not just the Check and not Just the taxes. All of it.
"So how do I fix it?"You stated this: "I figured out how to reverse the payroll taxes."