Third party payroll and paper checks

Hi, ChristieV78.

If we use QuickBooks for accounting and another service to run payroll, we still need to keep track of those paychecks in QuickBooks, since you've mentioned that we're using payroll from a third party isn't possible. The closest workaround that I can think of right now we do handwrite in creating a check for our employee. This way, we can record the data in your account.

I'm also adding these resources that can guide us in knowing your ways around QBO Payroll: Get started with Payroll. 

If we wish to print the paychecks or paystubs, visit this article for instructions: Print paychecks in QuickBooks Online.

It'll be always my pleasure to help if you have any other payroll checks related concerns or anything about QuickBooks. Just keep me posted in the comment section down below. Have a good one!

Here's how the 3rd party payroll works for this situation.  3rd party provider dumps the JE into QB.  The entry for the employee that receives a paper check has a credit to the checking for the net payment.  The owner then writes a paper check.  So there are two credits to the checking account.  How do I account for the extra credit?

Here's the situation.  The third party payroll service dumps the journal entry into QB.  The payment for the employee who is to receive the paper check is entered as a credit to the checking account.  Then the actual check is also entered as a payment since the check has to be recorded.  How then do I account for the duplicate payment since the Journal entry is one payment and the paper check is a second payment.  

Hi there, @ChristieV78. I'm here to help you fix the employee paycheck in QuickBooks Online (QBO). 

To resolve this, you can make an agreement with the employee to return the amount. Then, void the duplicate paycheck in QBO. You can also deduct that exact amount from the next payroll.

If the checks were deposited, you can enter a memo on the second one stating it was the double-deposited check. This way, the funds can be accounted for. Then, you can void that check. If you're unable to do so, please reach out to our Payroll support team to help you with the process. 

For additional reference, feel free to check this article: Reduce paycheck wages for an employee who has been overpaid. 

However, before performing the recommendations above, I highly recommend consulting your accountant to verify that this would be the best option for you. They are more knowledgeable in handling payroll checks, taxes, etc. This way, we can ensure you'll record everything correctly to avoid messing up your books. If you're not affiliated with one, don't sweat. Use our Find an Accountant tool to look for one. 

Keep me posted on how this goes. I want to ensure you'll be able to fix the paycheck of your employee in QBO. Have a good day ahead and take care. 

Employee only received one paycheck.  Thanks for your time.

@ChristieV78 

Here are a couple of options:

1) If you're going to print a check in QB, instead of making a journal entry, you can enter the same debits and credits as the accounts (categories) listed on the check, but leave out the banking credit because the check amount will serve that purpose.  To record the debits (payroll expenses), the amounts listed should be positive.  To record the credits (net pay and liabilities) the amounts listed should be negative.

2) You can print the check in QB, then delete it.  Make a note of the check number on the journal entry that was used to print the paycheck.  When you reconcile your bank account, you will have the journal entry credit to offset the cleared check. 

Option 2 is what I want thinking. Just wanted to confirm that it was a good option.  Since 3rd party payroll has already posted the entry, I don't want to touch that.  But the owner printed the check so that I can work with.

Thanks!