Payroll hours incorrectly entered as OT

Hello there, Stacey.

Let me walk you through the best way to correct your payroll and your employees' paychecks in QuickBooks Desktop. To address this, here are the steps you can follow to rectify this:

Void the Incorrect Paychecks: 

• For the employee who has not yet cashed their check, you'll need to void their paycheck. Go to the Employee Center, find the employee’s profile, and under the payroll information, locate the specific paycheck. Right-click on the paycheck and select Void Paycheck.

Reissue the Corrected Paychecks: 

• Once the incorrect paychecks are voided, you will need to reissue new paychecks with the correct pay details. Create a new paycheck for the employee, ensure to input regular hours instead of overtime hours, and categorize them correctly between regular and overtime. 

Handling Cashed Paychecks: 

• For the employees who have already cashed their paychecks, you'll need to ask them to repay the excess amount or deduct it from future payments, depending on your policy and agreement with the employees. This will require manual adjustments in their upcoming payroll entries by adding a deduction line item to their paycheck.

After issuing the corrected paychecks, make sure to review your payroll reports to ensure all changes reflect accurately. You can also consider setting up time off in QuickBooks Desktop Payroll. 

The Community page is always open 24/7, you can always post here for further concerns you have. I'm here to assist you anytime.

Probably the best way is to reverse the over-payment of overtime on the next paycheck.

Do this by listing the overtime overage hours using the overtime earnings item as negative hours and using the overtime rate, and then reverse that with another line item using the regular earnings item and regular earnings rate:

It'll look like this:

it will not allow me to enter a negative number in Quickbooks online to correct overtime.

Quickbooks online does not allow me to enter a negative number to correct overtime from last payroll period.

You need to create a new payroll item to amend the overtime from the previous pay cycle, Ed. Let's delve into this matter and work towards a resolution.

When managing payroll in QuickBooks Online (QBO), the software does not allow the entry of negative hours on employee paychecks, as these hours are used solely for compensation. It is important to enter only the exact number of hours worked to guarantee an accurate calculation of the year-to-date (YTD) total.

Moreover, you have to make another deduction or contribution item on your employee information page to adjust any overtime discrepancies from previous pay periods. To do so, you can follow the steps provided below:

1. Log into your QBO account.
2. Go to Payroll, then select Employees.
3. Click the employee's name.
4. Go to the Deductions/contributions section, then click Edit.
5. In the Deduction/contributions page, then click the highlighted + Add deduction/contribution word.
6. Enter the details of the deduction, then click Save.
   
   

To learn more about this topic, please refer to the following article about the supported payment types in QBO: Set up, change, or delete employee-paid payroll deductions.

Additionally, numerous payroll reports are available to help you track your business' finances. Consider reading this article to learn more about them and personalize it to your needs: Run payroll reports in QuickBooks Online Payroll.

For additional assistance with payroll management, consider Exploring QuickBooks Payroll to simplify your payroll process.
 
Your financial accuracy is our top priority, and I'm here to support you every step of the way. If you require additional assistance in rectifying your payroll paycheck, please feel free to get in touch.

@ed1954 

RE: Quickbooks online does not allow me to enter a negative number to correct overtime from last payroll period.

Yes, it's rather stupid. Desktop enabled this well over a decade ago.

Meanwhile, Intuit likes to claim QuickBooks Online is a reasonable replacement for Desktop. It's not.