Hi All,
I have an employee who had a Direct Deposit payroll returned. The total DD amount has been returned and is sitting in bank account as a deposit (uncategorized).
I would like to treat this as a bill and just cut a check back to the employee, as opposed to voiding check. There are a few reasons for this that are important:
1. This payroll check included a non-taxed reimbursement payment.
2. This payroll payment was SPLIT into two employee accounts via DD, but only 1 was returned.
Thus, voiding the payroll would require the employee to send back funds that have already been deposited (account 1).
My question is if someone advise how to categorize a paper check for the returned amount. I am thinking I create a bill for the returned amount from the employee, and then pay the bill via a paper check. After this, how should I classify/categorize these transactions:
1. the original payment (this can be matched to the payroll in QB,
2. the returned DD which is current an uncategorized deposit,
3. the bill that I would create to issue the check.
Any help is appreciated...I called QB support and was swamped with misunderstanding, incompetence, and phone holds...so I hope you can assist!
-N
