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?