Need to add funds back to a check that were incorrectly deducted

Let me guide you on how to add those funds back with the correct payroll item, cdhodgdon.

Ideally, you'll have to refund the employee for those months wherein insurance has been taken out. You can create a reimbursement payroll item to 
track and account your employee's health insurance deductions. I've outlined the steps below:

1. Go to the List menu.
2. Choose the Payroll Item List.
3. Click the Payroll Item button, choose New.
4. Select Custom Setup, click Next.
5. Pick Addition from the item type list and click Next.
6. Choose an expense account. This allows you to set up an account to track the money you owe the employee for reimbursements.
7. Set Tax Tracking to None and click Next. 
8. Select the option to Calculate on Net Pay and click Next.
9.  Enter the default rate and click Next.

Then, assign the reimbursement payroll item to the employee's record under the earnings column.

1. Click the Employees menu.
2. Choose the Employee Center.
3. Double-click on the Employee's information.
4. Choose the Payroll Info tab.
5. Click the drop-down menu for Additions, Deductions and Company Contributions. 
6. Select the item from the list that you wish to add to your employee's paycheck.

Once done, create a second paycheck for the reimbursement. This ensures that the liability balances are being tracked accurately. Additionally, you may want to have quick view of your payroll totals. I've included one of our resource for additional information: Create A Payroll Summary Report.

Feel free to let us know if you have other concerns about addition and deduction. Remember, we're here to make sure we get you covered.

Thank you for getting back to us and providing us with more details about the concern that you're having, @cdhodgdon.

You can use non-taxable insurance reimbursements. You'll just have to add a new payroll item. Set this new item and then add it to the employee's record. For detailed guidance, refer to this article: Create a non-taxable reimbursement payroll item.

When creating paychecks, the additional item will appear in the Other Payroll Items area of the Preview Paycheck screen.

In case you need to make changes to a paycheck or stop direct deposit, check out the following article on how to fix it: Delete or void employee paychecks. 

You may also consult with an accountant to check for other options that work best for you. 

I'm always here if you have more questions about managing your payroll forms in QBDT. I'd be glad to hear more from you in the comment section. Take care and enjoy the rest of the day.