Hello there, @JeanG.
Thanks for visiting the Community. I appreciate you for being so detailed with your concern.
In this case, you'll want to delete the paycheck and recreate a new one to adjust the payroll liability. Here's how:
Delete paycheck
- Go to the Banking menu, then select Use Register.
- Select and open the check you'll want to delete.
- At the top of the paycheck, choose Delete, then click OK in the pop-up box.
And now, since the withholdings for that paycheck is already paid, you'll need to exempt the employee for the deductions first before you recreate a new one. Here's how:
- Go to the Employees menu and select Employee Center.
- Choose an employee, then go to the Payroll Info tab.
- Click the Taxes button, then click the Federal tab.
- From the Filing Status dropdown, choose Don't Withhold.
- Go to the State tab, then choose the right option from the Filing Status drop-down. (The option will vary by state. You may see Don't Withhold, Exempt, or a different choice. If there's no Filing Status drop-down, your state is not subject to state withholding.)
- Select OK twice to save your selections.
Once done, you can now recreate the paycheck. You also need to add an item for the amount that was deducted from the previous paycheck.
For future reference, here are some of our related articles about exempting NRA for federal income tax withholding:
Feel free to message again if you have other questions. We're always delighted to assist.
