Voided Paycheck/ direct deposit

jhitchner64 · ‎November 17, 2022

I paid an employee via direct deposit in error. Direct deposit went through to their bank account and can not be reversed. Employee wrote me a check for the amount that was deposited into her bank account when we realized the error. In Quickbooks, I voided the payroll check.

My question is this: Where do I code the Deposit for the check that the employee made to reimburse me? Coding it to "Payroll expenses" seems incorrect as the voided payroll check is removing the entries in payroll expense, already. The deposit is equal to the net pay amount as that is what was direct deposited, of course.

Additional Question: I had already submitted the 941 tax deposit via e-payment. Will the future paychecks to this employee take this into consideration and adjust the federal withholding?

I currently have it deposited into Payroll Expenses, but that seems like it wll cause a discrepency in my year end payroll expense total vs my W3.

ChristieAnn · ‎November 17, 2022

Hi there, jhitchner64.

Thank you for visiting the QuickBooks Community. I'll be sharing details to ensure you can properly handle the reimbursement check. Then, ensure you'll be routed right person or team to assist you further in dealing with tax e-payment so your federal withholding stays accurate.

When choosing the correct account for reimbursement checks, I suggest consulting an accountant to avoid any discrepancies. They can provide suggestions on how to properly handle the reimbursement to ensure your records are in shipshape.

Additionally, since the paycheck you've voided is for direct deposit and was successfully processed, it may create a negative balance in the DD account in QuickBooks. With this, I suggest performing a liability adjustment to clear the balance out of your Direct Deposit Liability account. You can open this article to see the steps on how to accomplish the process: Adjust payroll liabilities in QuickBooks Desktop Payroll.

On the other hand, paying your federal taxes on time throughout the year is an essential task. You’ll get an email confirmation within 24-48 hours after you made the tax payment. With this, if the payment has been submitted to Intuit or already sent to the agency, there are no longer adjustments will be made. I suggest contacting our QuickBooks Desktop Payroll Team. They have the tools to pull up your account in a secure environment and be able to update any details in future paychecks so they can adjust your tax payment if needed.

Here's how to contact them:

Open QuickBooks.
Go to the Help icon and select QuickBooks Desktop Help/Contact Us.
Choose Contact Us.
Give a brief description of your issue and select Continue.
Sign in to your Intuit account and select Continue and Continue with my account.
We'll email you a single-use code. Enter your code and select Continue.
You'll be routed through How to connect with a QuickBooks expert and you choose which one is best for you.

Lastly, you may refer to this article to see various details on how you can resolve a negative balance in your Direct Deposit liabilities account: Payroll Liability and/or Balance Sheet Report shows incorrect amounts for payroll liabilities.

Don't hesitate again or click the Reply button below to post if you have any other concerns about voiding a paycheck in QBDT. I'm always here to help, jhitchner64. Wishing you and your business continued success.

View solution in original post

ChristieAnn · ‎November 17, 2022

Hi there, jhitchner64.

Thank you for visiting the QuickBooks Community. I'll be sharing details to ensure you can properly handle the reimbursement check. Then, ensure you'll be routed right person or team to assist you further in dealing with tax e-payment so your federal withholding stays accurate.

When choosing the correct account for reimbursement checks, I suggest consulting an accountant to avoid any discrepancies. They can provide suggestions on how to properly handle the reimbursement to ensure your records are in shipshape.

Additionally, since the paycheck you've voided is for direct deposit and was successfully processed, it may create a negative balance in the DD account in QuickBooks. With this, I suggest performing a liability adjustment to clear the balance out of your Direct Deposit Liability account. You can open this article to see the steps on how to accomplish the process: Adjust payroll liabilities in QuickBooks Desktop Payroll.

On the other hand, paying your federal taxes on time throughout the year is an essential task. You’ll get an email confirmation within 24-48 hours after you made the tax payment. With this, if the payment has been submitted to Intuit or already sent to the agency, there are no longer adjustments will be made. I suggest contacting our QuickBooks Desktop Payroll Team. They have the tools to pull up your account in a secure environment and be able to update any details in future paychecks so they can adjust your tax payment if needed.

Here's how to contact them:

Open QuickBooks.
Go to the Help icon and select QuickBooks Desktop Help/Contact Us.
Choose Contact Us.
Give a brief description of your issue and select Continue.
Sign in to your Intuit account and select Continue and Continue with my account.
We'll email you a single-use code. Enter your code and select Continue.
You'll be routed through How to connect with a QuickBooks expert and you choose which one is best for you.

Lastly, you may refer to this article to see various details on how you can resolve a negative balance in your Direct Deposit liabilities account: Payroll Liability and/or Balance Sheet Report shows incorrect amounts for payroll liabilities.

Don't hesitate again or click the Reply button below to post if you have any other concerns about voiding a paycheck in QBDT. I'm always here to help, jhitchner64. Wishing you and your business continued success.

jhitchner64 · ‎November 17, 2022

After researching the Direct Deposit Liabilities account, I found that the voided check created a balance in the account. Depositing the check to Direct Deposit Liabilities account, clears that balance.

The only issue that I still am unsure of, is whether or not the federal liabilities for the employee will be incorrect on her W2 or if my Quarterly 941 "amount due" vs "amount remitted" will be off.

I have read in different threads that the payroll liabilities for the employee will correct in future payrolls, is this true?

lilavalv · ‎March 10, 2023

Hi! Did you find out the tax portion of the voided check? I have 2 employees which account was wrong so I am supposed to begetting the credit back to our account in 5 business days but I am not sure how it will affect the taxes since now i have to create another check manually for them. Thank you for your help!

Kevin_C · ‎March 10, 2023

Thanks for joining this thread, @lilavalv.

It seems that you've posted a similar concern, and my colleague has already added an answer. Just in case you haven't been notified of the new response, here's the link: https://quickbooks.intuit.com/learn-support/en-us/employees-and-payroll/re-employee-direct-deposit-w...

If you have other QuickBooks-related concerns, feel free to get back and comment on them below. I'll be happy to answer them for you.

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Voided Paycheck/ direct deposit