I incorrectly paid an employee as a independent contractor and need to record the income so it goes on her W2 and pay the state and federal taxes on the money. She already cashed the original checks.
Create new paychecks for the same amounts and either same dates or the current date, grossing up the earnings so the net check is the same as the checks you already issued. Then void or delete the original checks.
If you back-date the checks to the original dates, you may need to re-file make additional tax payments, or both, depending on how far back the mistake goes.
You have to increase the earnings and let QuickBooks calculate all of the taxes. That's why I suggested creating a paycheck for each previously issued erroneous check, for the net amounts of those checks.
It's the easiest and most complete way to make the payroll 'whole' and avoid issues down the road.
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