Return a deduction that was accidentally withheld from an employee

okshakes · ‎May 08, 2020

I accidentally left a deduction for union wages on an employee's paycheck for two consecutive pay periods before noticing the problem. They had already paid those dues, and no longer owe the money, so the funds are just sitting in our liability accounts as money owed to this union, which will never be paid... because it isn't owed.

So, I need to both reimburse the employee and correct our books.

I assume this is a pre-tax deduction, so I am not sure if simply adding the money to the employee's next check would solve the issue, or if there would be some tax implications; further, how do I clear it out of my liability accounts... or is that a job for a journal entry.

I can't imagine I am the only person to have ever done this. Does anyone have some guidance they could offer, please?

MaryLurleenM · ‎May 08, 2020

Hello there, okshakes,

You'll want to reimburse the employee first, to do that you can follow these steps below:

Click Workers on the left pane.
Make sure Employees is selected at the top of the page.
Choose the employee that needs to be reimbursed from the list.
Select the small pencil icon beside of Pay.
Click Add additional pay types.
Place a check in the box for Reimbursement.
Click Done.
Click Done once more to exit the employee's profile.

When you run the next payroll, there will be a box wherein you can enter the amount to reimburse.

Furthermore, to adjust the payroll liabilities, you can contact our QuickBooks Online Payroll support to help you out:

Click the Help icon.
Select Contact us.
Enter adjust payroll liability, then click Let's talk.
Select from Start messaging or Get a callback.

Let me know if you have any other questions about reimbursement.

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Return a deduction that was accidentally withheld from an employee

Return a deduction that was accidentally withheld from an employee

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