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How to correct an ACH payroll check, over payment

Our company has bi-weekly direct payroll.  An employee informed me that I over payed him.  How do you correct direct payroll.  The employee will not work with me to correct the error.  He is part-time and only works 11 hours a week.  I have to manually  enter everyone's times, into our Lathem program.  My mistake was entering P.M when it was A.M.  I corrected the check in Quickbooks for the taxes.  If I take the 12 hours out of his next paycheck that would case tax problems too.  What should I do? 

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Best answer 08-09-2019

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QuickBooks Team

Re: How to correct an ACH payroll check, over payment

I'm here to help you, @Eileen_millers1.

 

Since you've already corrected your employee's paycheck, you won't have to take the 12 hours out of his next paycheck. The easiest way to fix this is an internal agreement between you and your employee.

 

But, since your employee won't cooperate with you, you have the option to deduct the next paycheck and set it as nontaxable to avoid messing up your taxes. Let me show you how. First, we need to add a new payroll item:

  1. Go to the List menu and select Payroll Item List.
  2. Select New from the Payroll Item drop-down arrow.
  3. Select the Custom Setup option button. Then select Next.
  4. Select the Addition item type. Then select Next.

Please see this article for more detailed steps: Create a Non-Taxable Reimbursement Payroll Item.

 

Make sure when you add an item to your employee payroll, set it as deduction and not addition. This way, it will deduct your employee next paycheck.

 

Also, I'm adding this article that can help guide you in your future task: Reverse a Direct Deposit.

 

As always, feel free to visit our Help articles page in case you want to learn some "How do I" steps in QuickBooks Desktop.

 

Should you need any further assistance, don't hesitate to leave a comment below. I'm always here to help. 

View solution in original post

2 Comments
QuickBooks Team

Re: How to correct an ACH payroll check, over payment

I'm here to help you, @Eileen_millers1.

 

Since you've already corrected your employee's paycheck, you won't have to take the 12 hours out of his next paycheck. The easiest way to fix this is an internal agreement between you and your employee.

 

But, since your employee won't cooperate with you, you have the option to deduct the next paycheck and set it as nontaxable to avoid messing up your taxes. Let me show you how. First, we need to add a new payroll item:

  1. Go to the List menu and select Payroll Item List.
  2. Select New from the Payroll Item drop-down arrow.
  3. Select the Custom Setup option button. Then select Next.
  4. Select the Addition item type. Then select Next.

Please see this article for more detailed steps: Create a Non-Taxable Reimbursement Payroll Item.

 

Make sure when you add an item to your employee payroll, set it as deduction and not addition. This way, it will deduct your employee next paycheck.

 

Also, I'm adding this article that can help guide you in your future task: Reverse a Direct Deposit.

 

As always, feel free to visit our Help articles page in case you want to learn some "How do I" steps in QuickBooks Desktop.

 

Should you need any further assistance, don't hesitate to leave a comment below. I'm always here to help. 

View solution in original post

Anonymous
Not applicable

Re: How to correct an ACH payroll check, over payment

go to the Plus (+) icon at the upper right, Choose payroll,  In the Payee column, select the employe, Choose Accounts Receivable in the Category column In the Amount column, enter the overpayment amount.  Click Save and close.

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