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kimforbes
Level 1

Payroll

The Owner has paid an employee a flat fee of $162 for 6 hours of disputed pay. This was done on just a regular check so no taxes were taken out. How do I add this amount so his income is correct and I also need to pay the taxes on this amount as well.

5 Comments 5
Angelyn_T
QuickBooks Team

Payroll

Thank you for adding a post, Kim. I'm here to help you with recording an employee's disputed pay in QuickBooks Desktop (QBDT).

 

You need to record an unscheduled payroll to calculate the taxes accordingly. If a regular check is created, delete it from your record.

 

Here's how:

 

  1. Open the check transaction.
  2. Tap on the Delete or Delete Check button.
  3. Hit Yes to confirm the action.

 

After that, enter an unscheduled payroll for the employee's pay.

 

  1. Go to the Employees tab.
  2. Tap on Payroll Center, then Pay Employees.
  3. Select Unscheduled Payroll.
  4. Fill in the information.
  5. Save the transaction.

 

I'm also adding this link for more tips about creating paychecks in QBDT: How do I create a paycheck for an employee?.

 

Once done, you're now ready to pay your taxes or payroll liabilities.

 

If you have any other payroll questions, let me know by adding a comment below. I'm always here to help. Keep safe!

kimforbes
Level 1

Payroll

Thank you for the great information. Just wanted to share that the check was created and already cashed by the employee. Any more instructions would be greatly appreciated!

JessT
QuickBooks Team

Payroll

Hi kimforbes,

 

I'd agree with Angelyn on creating a paycheck in the Payroll section so the taxes will be taken out. All you need to do is enter a net pay amount of $162, and the taxes and gross pay will auto-calculate for you. We call this grossing up a paycheck.

 

Before we start, you need to create a Bunos or an Annual Salary type of item to be used in the paycheck. These are the only earnings type of items that can be used to gross up a paycheck. We'll create it as we create the paycheck.

 

  1. From the Employees menu, select Pay Employees.
  2. Enter the end of the pay period and the check dates.
  3. Select the employee that you want to pay and click its name or the Open Paycheck Detail button.
  4. Remove all existing items.
  5. Click the ITEM NAME field and the down arrow, as shown below, and then select <Add new>.
  6. Choose Annual Salary and click Next.
  7. Choose Regular Pay and click Next.
  8. Name the item to something like Catch-up pay or Special pay, depends on you, and click Next.
  9. Click Finish, and use the item.
  10. Put a checkmark in the Enter net/Calculate gross checkbox.
  11. Enter 162 for the Check Amount.
  12. Click Save & Close, Continue, and Create paychecks.

 

After creating the paycheck, you can void the check on your record instead of deleting it, so you still have a record of it. Just enter a memo stating the reason why you void it.

 

 

You can always go back to this thread if you have any other questions in mind. Thank care and have a good one!

kimforbes
Level 1

Payroll

Thank you! I figured out the taxes but after I void this check how do I categorize the original amount so the income goes to that paticular employee? Does it go to payroll expenses?

BettyJaneB
QuickBooks Team

Payroll

I appreciate the update that you gave, @kimforbes.

 

I'd like to ensure that you'll be able to categorize your payroll items accurately in QuickBooks Desktop.

 

You'll need to select the expense account where the original amount will be taken from. Upon creating the bonus or annual salary pay type make sure to choose the correct account. You can use the payroll expense account in this case.

 

If you're not sure with the account that you're going to use, you can always reach out to your accountant to ensure that best course of action for your business. You can also seek help from our accountants through this site: Find an accountant.

 

For more tips about creating paychecks and managing payroll schedules in QBDT, you can always use these resources:

You can always visit me here if you have any other concerns with payroll. Just leave a reply below. Take care!

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