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35351
Level 2

Payroll issue

Last summer, was asked to change direct deposit information from who I thought was our employee,  but wasnt. Change was made and check was sent to a fraudulent account. Money was never recovered, but was still in Quickbooks. My issue was I needed to reduce employee earnings since it looked as though she had received money. I had already issued a new check to replace to stolen one.  I contacted QB to get help and they advised to void paycheck and replace with a standard check (recorded as bad debt). This was done Dec 2021. Trying to reconcile now for the month of Jan and it affected my liabilities report for retirement plan for that employee in QB. My report in QB now shows an amount less than what I paid out. Also the standard paycheck I created is still outstanding. I thought if I was voiding the paycheck and offsetting with another it would ok. HELP!

3 Comments 3
MadelynC
Moderator

Payroll issue

Help has arrived to ensure your employee’s earnings will be reduced, @35351.

 

In QuickBooks Desktop Payroll, you can add deduction items to the paycheck to reduce their wages. Before that, you’ll want to create a deduction payroll item first. I’m glad to show you the steps.

 

  1. Go to the Lists menu, then pick Payroll Item List.
  2. In the Payroll Item dropdown, select New.
  3. Choose Custom Setup, then select your options.
  4. In the liability account field, enter the same expense account used for the original compensation item.
  5. Select Compensation as Tax tracking type.
  6. Select Calculate this item based on Quantity if the employee was paid hourly, or select Neither if the employee paid with a salary item.
  7. Click Next.
  8. Enter the rate and hit Finish.

 

Once done, let’s add this new deduction item to your employee’s information. Just open their Payroll Info, then add the item under Additions, Deductions And Company Contributions. After that, the figure will automatically reflect on their paycheck.
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For more information about the process, check out this guide: Reduce paycheck wages for an employee who has been overpaid.

 

Moreover, here's an illuminating guide in case you'd like to change your employees' information in the program: Update or delete employee info.

 

If you need further assistance with your payroll, just leave me a message below. I’ll be here. Always take care!

35351
Level 2

Payroll issue

 I have already voided the paycheck that went to fraudulent account since this did not go to employee.That is what I was told to do to reduce wages when I contacted support. I also created a standard check which I thought was to replace the check I voided. When I voided the paycheck, it deducted what I had already paid in liabilities. So my bank report versus what I am reconciling is off. The standard check I created is not being offset by anything either. what should I do? 

SashaMC
Moderator

Payroll issue

Hello 35351,

 

Thanks for checking back in with us! For this matter, it would be best to connect with your accountant to see what would be the best move for your company. If you don't have an accountant, we offer a ProAdvisor service, where you can reach out to experts within your area. Many of them even offer free consultations. Here's how:

 

  1. Go to this Find my Accountant link.
  2.  Use the search field to enter your City or ZIP code.
  3. Select Search.
  4. Browse through the results and find one that works best for your business.

 

Please let me know if you have any questions. I will be more than happy to assist you further. Take care for now! 

 

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