Yeah, that makes sense, and you're right to double-check it to avoid duplicating expenses. If the original payroll and tax liabilities are already recorded, then the repayment to Intuit should be categorized as clearing the liability, not as an expense. You can categorize the repayment to Intuit as a payment against the payroll liabilities (using the Payroll Liabilities account or whatever liability account was originally used). That way, it doesn’t hit your expenses twice. If the liability wasn’t recorded properly due to the rejection, you might need a journal entry to balance it.
