If I refund an overdeducted wage garnishment back to employee, what do I do about the liability showing as due?

Welcome to the Community, @hrhmwh. Yes, you'll need to use a liability adjustment to correct overdeducted wage garnishment. 

Here's how: 

1. In the Employees menu, select the Payroll Taxes and Liabilities, then click Adjust Payroll Liabilities.
2. Use these tips to help complete the fields.

• Use the same date as the last paycheck of the affected quarter. Use today's date if you’re working on the current quarter.
•  
• The Effective Date is used to calculate amounts on your 940 and 941 forms as well as the Payroll Liability Balances Report.

        3. Select Employee Adjustment. It will update the YTD info reported on the employee W-2 form. 

        4. Select the employee.

        5. Complete the Taxes and Liabilities fields.

        6. Select Accounts Affected and then OK.

• Select Do not affect accounts to leave balances unchanged for the liability and expense accounts. The adjustment will only change the year-to-date amounts on your payroll reports.
• Select Affect liability and expense accounts to enter an adjusting transaction in the liability and expense accounts.

For more detailed steps, refer to this article: Adjust payroll liabilities in QuickBooks Desktop. 

I'd also suggest you contact your accountant for further assistance and to make sure your books are accurate. 

Let me know if you have additional concerns, @hrhmwh. I'm always around here to help. 

after following the instructions on how to refund a garnishment held from an employee in QuickBooks desktop, it doesn't give the money back to the employee

Welcome to the Community, lcampbell1.

Refunding garnishment through QuickBooks is for recording purposes only and doesn't give the money back to your employee.

You'll need to process the refund via ACH or bank transfer so they'll get the funds.

As always, feel free to visit our Help articles for QuickBooks Desktop in case you need tips and payroll-related articles in the future.

You can always drop by if there's anything else I can help you with, lcampbell1.  I'd be more than willing to lend you a hand.

I RECEIVED BACK A CHECK FOR AN GARNISHMENT FOR A EMPLOYEE. THE COURT STOPPED THE GARISHMENT. SO I WENT IN AND PUT A PLUS ON HIS GARISHMENT WITH THE AMOUNT THE C.OURT SENT BACK..  NOW THE EMPLOYEE HAS HIS MONEY BACK.  WHAT DO I DO WITH THE CHECK THAT WAS SENT BACK? IS THERE AN ENTRY FOR THIS?

THANK YOU,

L. CAMPBELL

I RECEIVED BACK A CHECK FOR AN GARNISHMENT FOR A EMPLOYEE. THE COURT STOPPED THE GARISHMENT. SO I WENT IN AND PUT A PLUS ON HIS GARISHMENT WITH THE AMOUNT THE C.OURT SENT BACK..  NOW THE EMPLOYEE HAS HIS MONEY BACK.  WHAT DO I DO WITH THE CHECK THAT WAS SENT BACK? IS THERE AN ENTRY FOR THIS?

THANK YOU,

L. CAMPBELL

Hi there, @lcampbell1.

It seems like a duplicate post. My peer has provided an answer for you here: https://quickbooks.intuit.com/learn-support/en-us/employees-and-payroll/re-quickbooks-assisted-payro...

Please let us know if you have any other questions or concern. We're always around to help. Keep safe always!

I appreciate you referring me to the other article but I have read that and it does not solve the problem.  I have voided the check returned and it does now balance.  I hope this was the correct thing to do?

Thank you,

Lorie Campbell

Was this issue solved? I am having the same issue. I have funds that we withheld to an employee and I have to reimburse him that money.

I voided the checks which now put those amounts in the liability tab

I put the total funds withheld as positive instead of negative.

How do I get rid of the liability payment?

Thank you! 

Hello there, @lilavalv. We'll share details about reimbursing an employee and how you can get a hold of the liability payment inside QuickBooks Desktop (QBDT).

When reimbursing an employee, you can add the reimbursement to the payroll or do it outside the program. In QBDT, these are the steps:

1. Access your QuickBooks Desktop company.
2. Click the Employees menu, select Manage Payroll Items.
3. Select New Payroll Item and then click Custom Setup. Select Next.
4. Select Addition, then select Next.
5. Enter the name of the Reimbursement item and then click Next.
6. Select an expense account for tracking this item.
7. Set the Tax Tracking type to None and then select Next. Also Under Taxes, none should be selected. Select Next.
8. For amounts paid per mile/kilometer, select the Based on Quantity checkbox. Then select Next.
9. Choose to calculate on Net Pay and then select Next.  Once done, enter a Default Rate and select Finish.

For more details, please see this page: Reimburse your employee in QuickBooks Payroll.

To get rid of the liability payment, you'll need to delete it from the liability account. However, it's best to refer to your accountant before taking action. If you don't have an accountant, I can help you find one. Feel free to visit this page to find an accountant for your business: Find a QuickBooks ProAdvisor. 

Once you're ready, here's how:

1. Access your QuickBooks Desktop company.
2. Select the Company menu, and then click Chart of Accounts.
3. Locate the bank used, and then open the bank register.
4. Look for the transaction. Right click on it and then choose Delete.

In addition, if you wish to keep track of your reimbursements inside the program, you can run a report anytime. Please see this page for more details: Understand reports.

It has been a delight to host you today. Should you have any further inquiries regarding reimbursements, do not hesitate to reach out. Please feel free to leave your comments below. Take care and stay safe.