QB Pro Desktop - Void Direct Deposit

I am also on QB Acct Desktop.  Because of the Corona Virus, an employee already filed for Unemployment and now doesn't want his paycheck to go through (because of the hassle of starting the Unemployment process over) but I already did it.  It deposits in the am.  If I select it and void it, will it withdraw the money back from him?  What would be the steps.  Thank you

Thanks for joining the thread, @rosenacolella.

You can void a paycheck two days before when the check will be processed. This means if your check date is Friday, then the latest time to void the paycheck is by 5 pm PT on Wednesday. However, you can request a reverse direct deposit that will allow you to reverse the paycheck you paid your employee. If you choose this route, it'll take five business days to process from the requested date, and there's a $75 charge for the reversal even if you don't get the money back. The request will need to be submitted between the 3rd and 5th day after the pay date. You can start the application by following these steps:

1. Open the Direct Deposit Reversal form.
2. Choose New Request.
3. Fill out the required fields and transaction information, then press Save.
4. Once the reversal is approved, you can void the paycheck in your payroll records.

Now you'll want to wait and see if the application is accepted or rejected for the reversal via email. In the meantime, you can check out this article about reversing a direct deposit for more information.

 Feel free to reply below if you have any other questions or concerns. I'm always here to help.

I need to void a direct deposit but I would like to keep the employees account on direct deposit.  The system did not take out taxes so I need to void and redo. Help!

Hi, melo2. Thanks for joining in this thread.

You can follow the step-by-step process below in voiding an employee's direct deposit 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.

You can read through this article for more details about voiding a direct deposit paycheck: Cancel a Direct Deposit pay check. On the same link, you'll find steps on how to view its status as well as tips about deposit deadlines.

After that, updating your payroll tax table is a good start before running payroll in QuickBooks Desktop. This is to ensure that your taxes and data are accurate. Once done, you can re-create the paycheck using unscheduled payroll and remove the option to Use Direct Deposit.

You can scan through this write-up for the detailed steps in re-creating the paycheck and ensure the taxes are calculating properly: How do I create a paycheck for an employee?

I'll be sharing with you this article: Payroll 101. It contains more information about the different types of compensation as well as on what are the types of federal forms you need to file. Also, this will provide you a sample breakdown of a paycheck.

I'm just a few clicks away if there's anything else you need. I need to make sure this is resolved and you're back to running your normal business processing. Have a good one.

Hello,

I had an employee's Direct Deposit go through on our end Thursday night. Her bank account was closed and we have received confirmation that they are sending the money back to us within the next five days. She has requested to have a papercheck until she can open a new account. Would I need to void her previous Paystub, create a check and allocate her taxes appropriately? Are there any extra steps I need to do?

Hello there, AXXIESXX.

Yes, you'll need to void the direct deposit. Then, create a paper check for the meantime.

Let me guide you with these steps:

To void a direct deposit:

1. Select the Employees menu, then select Edit/Void Paychecks.
2. Change the Show paychecks through/from dates to the date of the paycheck you need to void.
3. Press Tab on your keyboard.
4. Select the check-in question, and select Void.
5. In the pop-up box, enter YES and click Void.
6. Select the checkbox to agree to the terms and conditions of voiding the paycheck.

Then, send the voided paycheck. You won't see any direct deposit checks to send, but this lets our system know to cancel the paycheck.

1. Select Send Payroll Data on the Employees menu.
2. Select Send.
3. Enter your payroll PIN, then select OK.

Afterward, you can create a paper check. Here's an article as your guide: Create and run payroll.

Keep me posted if you need further assistant in voiding checks. I'll be around to help you out.

Our company has had the same scenario and we are wondering where/how to record the refunded monies from the DD reversal.

Hello, WJHerring. 

The first option is you need to void the direct deposit check once you get the money back. You can follow my colleagues Adrian_A steps above on how to void it. 

For more details about Reverse direct deposit, please refer to this article: Reverse a direct deposit 

Then another way of recording the refund in QuickBooks is by making a bank deposit. 

Here’s how to Make Deposits:

1. Go to the Banking menu and choose to Make Deposits.
2. If the Payments to Deposit window appears, select OK.
3. In the Make Deposits window, select the Received from dropdown and choose the vendor who sent you the refund.
4. In the From Account drop-down, select the appropriate Accounts Payable account.
5. In the Amount column, enter the actual amount of the refund.
6. Click Save & Close once you’re done. 

I recommend consulting with your accountant on the best way to handle this.

You can also check this article for more details about the process: Record and make bank deposits in QuickBooks Desktop.

The following article will also guide you in recording refunds from your customers: Give your customer a credit or refund in QuickBooks Desktop for Windows. 

Don't hesitate to drop a comment below if you have other questions. I'm always here to help. Take care!