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hope12715
Level 2

Recovery of voided paycheck

We were informed by an employee on our pay date that she had closed the account into which her direct deposit was scheduled to go.  We immediately voided the pay check, removed the direct deposit settings from her employee account and re-issued her a manual pay check on the same date.  The employee contacted her bank, who informed her that the direct deposit would be rejected due to the closed account and would then be deposited back into our account.  As a result, we never initiated recovery of funds through QuickBooks.  The deposit of the pay check funds has now been made to our checking account by intuit today, but I'm not sure how to reflect this deposit in QuickBooks.  Please advise.

2 Comments 2
AileneA
QuickBooks Team

Recovery of voided paycheck

Hello, hope12715. 

 

Thanks for visiting the Community today. I'm here to help ensure that you'll be able to record the deposit and reflect it on QuickBooks Desktop.  

 

We can manually enter a deposit in QuickBooks Desktop for the rejected payroll, Here's how: 

 

  1. Go to Banking > Make deposit.
  2. Select the Deposit To list and choose the bank account you want to deposit into.
  3. In the Date field enter the date the rejected funds were returned.
  4. In the Received From column, choose the QuickBooks Payroll Service vendor.
  5. In the From Account field enter the Direct Deposit Liabilities account.
  6. In Memo enter the employee name.
  7. In the Amount field enter the amount of the rejected direct deposit.
  8. Skip Check No, and choose a method of payment and a class if you use class tracking.
  9. Tap Save & Close.
  10. Check the Direct Deposit Liabilities balance to confirm that it is now correct.

If you would like to associate this deposit to the individual employee, you can locate this transaction in the register and add the Employee name to the Payee line. 

 

You can also check this article for more details about the process: Employee did not receive direct deposit created in QuickBooks Desktop Payroll

 

I’ve also added this article that you can use for future in guiding you how payroll works in QuickBooks: Payroll 101. 

 

Let me know if you have other concerns about making deposits in QBDT, It's always my pleasure to help you out. Have a wonderful day ahead! 

hope12715
Level 2

Recovery of voided paycheck

Thank you so much!  I just couldn't wrap my brain around that simple solution!

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