Overpaid employee willing to return the wages but complaining of the tax burden. How should I handle their repayment so they do not get penalized for taxes paid?

Addressing employee overpayment is crucial for smooth payroll management. Let me provide you with some tips to help streamline your payroll.

When correcting an employee overpayment, you’ll have to delete the check before 5 PM, two banking days before the check date. Otherwise, you can arrange with your employee to include any overpayment in their next paycheck.

Moreover, I suggest contacting our Payroll Support for detailed steps to correct your employee wages and handling its payroll taxes.

If you have other clarification, please don't hesitate to let me know by leaving a comment below. I'm available and prepared to help you whenever you need it.

Genmarie M,

thank you for your reply but the questions was for a tax prospective. it was not related to submission timing 

Dealing with overpayments can be challenging. I want to ensure you have all the information to address this issue effectively, accounting.

In the event of an overpayment, there's an overcollection of tax. If it's already paid, I recommend contacting IRS or your state agency. You can either request a refund or leave the tax overpayment as is. Doing so will cover any additional payroll tax liabilities for the remainder of the quarter until it's used up.

To process the correction of your employee's total taxable amount and the company's tax record, I recommend contacting our payroll experts.

Here's how to reach them:

1. Go to the Help menu. Click the Search tab.
2. Select Contact Us. Pick Payroll and Continue.
3. Choose the Chat or Callback option.
    

Moreover, if you wish to view payroll tax payments and forms, check out this article: Look at previously filed tax. 

Always document all adjustments and communicate transparently with your employees. Don't hesitate to contact our payroll support for guidance to ensure that you can correct the overpayment without incurring any tax penalties. Feel free to ask for further clarification regarding this matter. I wish you the best, accounting!