How to fix payroll error in desktop? Reimbursement entered instead of bonus comp.

beaglesd1 · ‎June 06, 2021

Reimbursement entered instead of bonus taxable comp.

Please help, how do I fix this?

Checks cashed & 941s done. Involves multiple pay periods first half of 2021.

Guessing fix involves reclassing the reimbursement as a cash advance right? Then change it via cash advance repayment to compensation?

Need detailed walkthrough please, Quickbooks Desktop Payroll novice.

Thanks!

john-pero · ‎June 07, 2021

Okay, it will depend on what version of QB payroll you use and if you can edit paychecks on your own or submit changes to Intuit.

Presuming you use a version where you can control the paycheck

1. Open paycheck

2. View details - write down the net amount so you do not have to hunt for it

3. Unlock net pay (sometimes necessary,sometimes not)

4. Re-categorize the reimbursement as Cash Advance

5. verify net pay remained the same, save

Next pay

1. enter the bonus pay item

2. in deductions enter the cash advance repayment (I use two different items that each post to same account)

3. Save

Reminder, that if bonus pay is sizable (and presumably even if not) there is a mandatory flat rate FWT on the bonus pay.

If you use other than a DIY version then, armed with your calculations from above, call payroll support tpo have them edit the issued paycheck

View solution in original post

Ryan_M · ‎June 06, 2021

I'll point you in the right direction for support with your payroll query, @beaglesd1.

You'll either need to delete or void paychecks for this type of issue. Given that we're talking about the paychecks for the first half of 2021, it's best to speak to our Technical Support team for assistance. They can pull up your account information within a secure environment, and assist with providing a resolution to the incorrect payroll item included in the paychecks.

See this article for the steps: Contact Payroll Support. Please take note of their operating hours, so you know when they're available.

As for the steps on how you can delete or void paychecks, refer to this article: Delete or void employee paychecks. It includes the possible reasons why you'd need to delete or void paychecks, along with the steps on how to proceed.

Feel free to leave a comment below if you have other questions about payroll items in QuickBooks Desktop (QBDT). I'll be around to help you out.

john-pero · ‎June 06, 2021

Reimbursement to an employee for their out-of-pocket purchases for your business are NOT taxable income to the employee. So if it is a true reimbursement for expenses then the system has it right. Only taxable fringe benefits other than cash are added as taxable income

beaglesd · ‎June 06, 2021

It’s definitely compensation not reimbursement. I definitely need help fixing that, thanks!

beaglesd · ‎June 06, 2021

I’d rather just treat the paid amount as an advance and then correct it in the next payroll if possible.

beaglesd1 · ‎June 07, 2021

I mean I made an error and chose reimbursement, but it is actually a bonus so should have been compensation.

john-pero · ‎June 07, 2021

Okay, it will depend on what version of QB payroll you use and if you can edit paychecks on your own or submit changes to Intuit.

Presuming you use a version where you can control the paycheck

1. Open paycheck

2. View details - write down the net amount so you do not have to hunt for it

3. Unlock net pay (sometimes necessary,sometimes not)

4. Re-categorize the reimbursement as Cash Advance

5. verify net pay remained the same, save

Next pay

1. enter the bonus pay item

2. in deductions enter the cash advance repayment (I use two different items that each post to same account)

3. Save

Reminder, that if bonus pay is sizable (and presumably even if not) there is a mandatory flat rate FWT on the bonus pay.

If you use other than a DIY version then, armed with your calculations from above, call payroll support tpo have them edit the issued paycheck

beaglesd1 · ‎June 07, 2021

This sounds perfect. Using Quickbooks desktop pro with enhanced payroll (DIY)

Part 1 reclassifying reimbursement to cash advance worked fine. Since all non taxable no change to taxes/net. I can't imagine how messy this wound be if changing taxable items...

Next payroll I'll enter a cash advance repayment to cancel out the cash advance and enter a new bonus with the amount - with taxes paid!

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How to fix payroll error in desktop? Reimbursement entered instead of bonus comp.