Refunding erroneously deducted retirement funds to employee

SheenaWilton · ‎November 08, 2022

When our accountant set up our CalSavers deductions in QB desktop, he included 2 employees that shouldn't have been included. As a result, they have had money erroneously deducted from their paycheck which we need to return. What is the best way to accomplish this so all my reports and accounts are accurate? I'm thinking I need to run it through payroll but I can't see how to make it for the correct amount.

Thanks!

Archie_B · ‎November 08, 2022

Hi there, Sheena.

I'm here to share an idea on how to process a refund deducted from your employees in QuickBooks Desktop.

You can reimburse your employee with the same amount when creating their next paycheck.

Here's how:

In the Enter Payroll Information window, click the name of the employee or hit Open Paycheck Detail.
Under Other Payroll Items, select the same deduction payroll item.
Put the same amount as a positive number, then hit enter on your keyboard.
Select Yes on the warning message.

Here's an article for more information about the process: Refund your employee for a deduction that was overwithheld.

Also, make sure that the payroll items for employees who aren't covered by the retirement plan are removed. You can use this link as a reference: Set up and manage payroll items for your insurance benefit plan. Just go directly to Step 3: Make sure the items are on your employees’ paychecks for the steps.

If you need further assistance or have follow-up questions, let me know in the comment. I'll be here to check your response.

View solution in original post

Archie_B · ‎November 08, 2022

Hi there, Sheena.

I'm here to share an idea on how to process a refund deducted from your employees in QuickBooks Desktop.

You can reimburse your employee with the same amount when creating their next paycheck.

Here's how:

In the Enter Payroll Information window, click the name of the employee or hit Open Paycheck Detail.
Under Other Payroll Items, select the same deduction payroll item.
Put the same amount as a positive number, then hit enter on your keyboard.
Select Yes on the warning message.

Here's an article for more information about the process: Refund your employee for a deduction that was overwithheld.

Also, make sure that the payroll items for employees who aren't covered by the retirement plan are removed. You can use this link as a reference: Set up and manage payroll items for your insurance benefit plan. Just go directly to Step 3: Make sure the items are on your employees’ paychecks for the steps.

If you need further assistance or have follow-up questions, let me know in the comment. I'll be here to check your response.

SheenaWilton · ‎November 21, 2022

Thank you! I think this will work. I was worried since it *is* normally entered as a negative. I was also trying to do *just* the refund, not adding it to a paycheck so I think that made it more confusing.

Sheena

JaeAnnC · ‎November 21, 2022

You're welcome, @SheenaWilton!

We're pleased to hear that the resolution provided by my colleague was able to help. If you have further concerns about setting up deductions for your employee's payroll, please don't hesitate to ask. The Community is always here to help you out. Have a great day, Sheena!

SheenaWilton · ‎November 21, 2022

Just one more question. I just ran my CALSAVE report for most recent pay period and the money was still withdrawn from their paycheck. Why is it still happening? When I look at their set up in QB, there is no line item to calculate a CALSAVE amount. When I look at employee payroll info, all that shows is his hourly wage. I even looked under Taxes/Other and CALSAVE isn't listed there. Is there somewhere else I should be looking? Could there be a default in Payroll Setup that I'm missing?

SheenaWilton · ‎November 21, 2022

Update: I ran another report and it looks like the amount is no longer being deducted. Yay! It appears that the report I was running was looking at either pay date or check date, NOT pay period as I thought.

Thanks to you and your team for your help. I hope you all have a great Thanksgiving.

Archie_B · ‎November 21, 2022

That's great to know, @Sheena.

You're always welcome to come back to this thread or post you other concerns in the Community. We will make every effort to give the best assistance and relevant information for your concerns. Take care and enjoy your week!

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Refunding erroneously deducted retirement funds to employee