How to do negative deduction on paycheck to reverse erroneous deduction?

Hi there, @cjmdvm.

To reverse the erroneous deduction on your employee's pay check, you can void and recreate it to enter the correct info. This way, we can ensure that your employee's year to date contribution amount will be accurate.

Here's how:

1. Go to the Workers menu at the left pane.
2. Click Employees.
3. Pick the employee's name.
4. Select on Paycheck List.
5. Change the date range if necessary. Then choose the pay checks you want to delete.
6. Confirm if the check has been cashed.
7. If no, hit No then Continue. Manual pay checks will be deleted. And direct deposit checks will be voided. If yes, tap Yes then Continue. Both manual and direct deposit checks will be voided.
8. Mark the check-mark box to confirm the action.
9. Tick on Void Paycheck.

For more details, please refer to this article: Delete or void pay checks. 

Also, if in case the pay check is already cashed, you can make an internal agreement with your employee regarding the deduction or add the amount on the next pay check.

If in case you want to change a deduction or contribution in QuickBooks Online Payroll, please visit this link for the detailed steps: Add or edit a deduction or contribution. This page also contains info about the difference between a contribution and a deduction and option that you can apply to the insurance plan. 

If you have other questions, just let me know by adding a new post below. I'm always here to help. Stay safe.

How do I manually input a negative withholding value on an upcoming paycheck, so as to reverse a tax deduction taken on a prior check that the employee was not subject to? I have an employee who had 2 tax deductions incorrectly taken on their first paycheck for state taxes they were not subject to. The employee profile has been corrected and now I would like to input a negative value for those deduction codes on their next paycheck so as to return the amount and correct the year to date accumulators.

I've got you covered, PRandBeneConsultantLN. I'm here to provide details on how to handle your employee's taxes.

In this case, you'll need to reimburse your employee for the deducted amount, then contact our Payroll Support Team for the necessary payroll adjustments to ensure correct year-to-date accumulations. 

Here are the steps to reach out to our live representatives:

1. Sign in to your QuickBooks Online(QBO) company.
2. Go to Help (?).
3. Select Contact Us.
4. Enter your concern, then select Let's talk.
5. Choose a way to connect with us:
   • Start a chat with a support expert.
   • Get a callback from the next available expert.

Moreover, you can check out this article to learn ways to reimburse your employee: Reimburse an employee in QBO.

I've also added this article to help you when creating, managing, assigning, or updating your employee's pay schedules: Set up and manage payroll schedules.

I'm just around in the Community if you have other issues managing your payroll. Feel free to post again here. Have a good one.