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Refund your employee for a deduction that was overwithheld

SOLVEDby QuickBooks22Updated February 24, 2023

Learn how to pay your employee back for an incorrect paycheck deduction.

If you overwithheld a retirement plan, health insurance, or garnishment deduction on your employee’s paycheck, you’ll need to reimburse them.

We’ll show you how you can refund your employee on their next paycheck. 

QuickBooks Online Payroll

Contact us to correct your employee’s paycheck. Once we fix the paycheck, you’ll receive an email with instructions for the next steps.

QuickBooks Desktop Payroll

You can refund your employee’s overwithheld deduction when you create and run their next paycheck. 

  1. Select Open Paycheck Detail.
  2. In the Other Payroll Items section, use the same deduction payroll item. Enter the amount over-collected as a positive number.
  3. Select Yes on the warning message. Note: If you already sent the payment to the agency, you or your employee need to request a refund from the agency.

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