Payroll deducted twice from Bank Register

Hi there, Jkhalaf.

Thanks for taking all the necessary steps to fix your paychecks in your QuickBooks Desktop Payroll. Let me share some insights on how to handle your direct deposit paychecks.

It's possible that after you delete the paycheck and recreate it, the line item shows zero dollars ($0.00). So for this not to happen again let's create a direct deposit payroll item since it's needed when you recreate missing or voided direct deposit paychecks that are sent to employees' accounts. 

To do this here's how:

1. Sign in to your QuickBooks Desktop Payroll.
2. Navigate to Lists, and select Payroll Item List.
3. Tap the Payroll Item in the lower-left corner and choose New.
4. Click on  Custom Setup and select Next.
5. Select Deduction and click on Next.
6. Enter the payroll item name, for example, Direct Deposit Offset, and hit  Next.
7. For Agency for employee-paid liabilities, leave the top two fields blank.
8. In the field of Liability Account, click on Direct Deposit Liabilities, then Next.
9. Set the Tax tracking type to None and hit Next.
10. Make sure there are no taxes selected and click on Next.
11. Set Calculate based on quantity to Neither and select Next.
12. Set Gross vs. Net to Net pay and hit Next.
13. Leave the Default Rate and Limit fields blank and click on Finish. 

If the issue persists, I recommend contacting our customer support team again. They can closely examine the problem and conduct further troubleshooting to fix it.

Furthermore, you can also use these articles to help you manage your QuickBooks Desktop Payroll reports:

• Run payroll reports.
• Customize payroll and employee reports.

Please feel free to ask for further assistance from the QuickBooks Community if you need help with processing your payroll paychecks or generating reports in QuickBooks Online. We're always ready to support you 24/7. Have a great day.

Thank you Eman_E.

Now that I created this Payroll Item, how do I offset all the paychecks that are duplicated?

Thanks for coming back to this thread, jkhalaf. Let me help you further. 

After creating a Payroll item, you can reopen the paycheck and add the created Direct Deposit Offset item. This way, it'll help to balance your check register. 

Here's how: 

1. Go to the Employees menu located at the top of your screen.
2. Choose the Pay Employees dropdown.
3. Click Unscheduled Payroll.
4. Put a checkmark right beside the specific employee.
5. Select the Open Paycheck Detail option.
6. Within the Preview Paycheck window, go to the Other Payroll Items.
7. Click the Item name dropdown and enter the created Direct Deposit Offset item.
8. Type the negative amount for the Direct Deposit Offset item. Ensure that it has the same amount as the net amount of the paycheck.
9. Press Save & Close once done.

You can also refer to the screenshot below for more visualization: 

After following the steps above, you can follow step 3 in this article to correct your payroll liability balances and send your payroll data to Intuit: Recreate a missing or voided direct deposit paycheck in QuickBooks Desktop Payroll. 

Furthermore, you can also run, print, and customize payroll reports in QuickBooks Desktop Payroll to check some information that is related to your employee: Run payroll reports. 

Take all the time you need to follow the steps mentioned in this post. I'll be right here if you need any help along the way.

Thank you IrizA,

I followed all the steps, and it was fine, except that the Offset does not show up in the Bank register. Meaning the amount that was offset is not credited back or zeroed out to get me back to the actual balance in my bank register.

It's glad to know that the steps provided by my colleague work fine, jkhalaf. 

Allow me to jump into this thread and share some insights on why the offset doesn't show up in the bank register.

In the direct deposit, the total amount should be reflected in the direct deposit liability check. Thus, the Direct Deposit offset will not appear in the bank register. It is used to zero out the net pay of the recreated paychecks to balance your check register and make sure your employees aren't paid twice.

Furthermore, you can also run, print, and customize payroll reports in QuickBooks Desktop Payroll to check some information that is related to your employee: Run payroll reports. 

I'll keep an eye out for your reply. If you have further questions about turning off ads or any QuickBooks-related concerns, feel free to include them in the comments. We're here to assist you 24/7.

IrishNinoJ,

Thank you for the reply. My ultimate goal is to ensure that my bank register is reflecting the correct balance as my actual bank account.

Please take a look at the attached screenshot for the actual problem.

The line item "QuickBooks Payroll Service" reflects the total amount debited for all 5 employees combined (Assad, Brian, Dan, Janet and Joseph).

You will then notice that each employee is listed separately, but they show $0.00, except for Joseph. He is actually showing a $1,629.58 amount. It should be $0.00. The reason he is showing that amount is because I recreated his paycheck, but I never really deducted these funds form the bank, because I unchecked "Direct Deposit." So while the actual total payroll for that period is $12,206.00, QuickBooks is deducting $13,835.58 from the bank register ($12,206.00+$1,629.58).

I am looking for a way to credit back the $1,629.58 or zero it out.

Thanks for coming back with some detailed information, jkhalaf. I'm here to share some tips on how you can resolve this. 

Since you mentioned that you recreated Joseph's paycheck, you're on the right track and correct about unchecking the Direct Deposit. To proceed, you'll need to enter a negative amount for the Direct Deposit Offset item. Ensure that it has an equal amount to the net amount of the paycheck. After making some changes within the paycheck, you can now Save & Close. 

Additionally, you can continue in step 3 after you're done putting a negative amount to your employee: Recreate a missing or voided direct deposit paycheck in QuickBooks Desktop Payroll. 

Moreover, you can run a report to check some information related to your employee. 

Feel free to come back and ask us again whenever you need some help. We'll be glad to assist you.