Printed a paycheck twice (and it got deposited twice) -- how to get bank rec to work

Hello, edboost. Thanks for reaching out.

I've got to ways you may consider doing to handle this.

You'll want to make an agreement with your employee to return the amount, then void the duplicate paycheck in QuickBooks Desktop. Or deduct the amount to the next payroll.

To void a duplicate paycheck:

1. Click Employees at the top menu bar and choose Edit/Void Paychecks.
2. On the Edit/Void Paychecks screen, change both the Show paychecks through/from dates to the date of the check, and press Tab on your keyboard.
3. Select the check-in question and select Void. In the pop-up box, enter 'yes' and select Void.
4. If you agree, select the checkbox saying you agree to the terms and conditions of voiding the paycheck.
5. Repeat the previous steps as necessary to include all checks that need to be voided.
6. Once the check has been voided, close the Edit/Void Paychecks window.
7. Select Employees, and choose to Send Payroll Data.
8. Select Send. You won't see any direct deposit checks to send. That's because this step is done to let QuickBooks Desktop connect with the server to let it know there has been a check modified and will be removed from direct deposit.
9. Be sure the paycheck has been voided by looking in your bank register used to pay employees. The memo line will show a modification has been made to the check. It may say: "Voided paycheck Payroll Service Funds Recovered." On the payroll liability check, the memo line may say: "Adjusted for voided paychecks." No confirmation report will be sent for voided pay checks.

For more information, please check out this article: Find and delete duplicate paychecks in QuickBooks Desktop Payroll.

Add a comment below if you have any other questions. I'm a post away to help. Keep safe!

Hi glinettec,

Thanks for your thorough reply.  The problem is that the check was given to the employee and was deposited.   So, I can't just delete it.   I actually did not create the check twice.  It's only in the system once.  But I printed it twice.  So, the same check (different numbers, but same payroll) was literally deposited two times.  I need to find a way to enter this check in my system to so I can account for the actual credit on my bank rec. 

I'll deal with the HR part of it later.... but for now I need to deal with the accounting/QB part where I don't know how to let the bank rec feature let me move on with a month out of balance.  

Thank you!

-tiffani

Hi there, @edboost.

Thanks for following up with us and providing those excellent details. 

You can enter the second check that was printed into QuickBooks and enter a memo stating it was the double deposited check. This way, the funds can be accounted for. Then, you can always void that check by using the steps my colleague provided above. 

However, before moving forward with these steps, you'll need to confirm with your accountant that this would be the best option for you. Your accountant will know how to handle the check, taxes, etc. If you don't have an accountant, don't sweat. You can find one here in our Resource Center. 

If you have any additional questions or concerns please let me know. Take care and have a great weekend! 

In the case where a payroll check was printed twice and cashed twice:

- The employee really only got paid for their labor once. As you only have one paycheck in QuickBooks, your payroll is OK, and there's nothing to fix in that area. Except if you don't get the money back from the employee. In that case, see #3 below.

- If you will get the money back from the employee, then to record in QuickBooks what happened, record a second check, a standard check (not a paycheck) for the net check amount. Perhaps use the payroll expense account, or if you'll be requesting a repayment from the employee, use an asset account as you've essentially fronted the employee some extra money - like a loan.

- Once the second check is recorded, then reconcile can be completed.

- Later, you have a couple of ways to get the money back from the employee, or not:

1. Ask the employee to give you cash or write a check to you. Deposit the money and use the same account you used above to record the second check.

2. Create a net payroll deduction (no tax implications) to use on future paychecks. You can deduct all of the money at once, or a smaller amount to make it easier for the employee. As you set up the item, you can choose the option for a one-time limit. Then add the payroll item to the the employee and enter the amount per paycheck you'd like to deduct and the limit. After doing this, the item to future paychecks and deduct the amount you indicated until the limit is reached.

3. If you elect to not request the money back, then you're essentially paying the employee. Sort of like a bonus. To be in compliance, you should create a paycheck for the net check amount to record this payment to the employee. You can do this by creating an off-cycle paycheck (and if the employee normally has benefits like insurance or retirement, make sure those items are set to 0.00 for the special check.)  Mess with the gross pay until the net pay matches the extra check amount.