Recreate a missing or voided direct deposit paycheck in QuickBooks Desktop Payroll

Learn how to handle missing or voided direct deposit paycheck.

Do you have missing direct deposit paychecks in QuickBooks Desktop payroll?  It'll happen if you've voided a paycheck after it's sent or you've restored a wrong backup file.

In this article, we'll show you how to handle this issue.

Note: If you use Assisted Payroll and you're missing a paycheck, try sending a zero payroll to restore the paycheck. If the paycheck isn't there, then follow the steps. You'll need to contact support if the missing paycheck is from a prior quarter.

Step 1: Create a direct deposit offset payroll item

The offset item is needed when you recreate missing or voided direct deposit paychecks that are sent to employees' accounts. It is to zero out the net pay amount so that your employee doesn’t get paid again.

1. Go to Lists, and select Payroll Item List.
2. Select the Payroll Item in the lower-left corner and select New.
3. Select Custom Setup and select Next.
4. Select Deduction and select Next.
5. Enter the payroll item name, for example, "Direct Deposit Offset" and select Next.
6. For Agency for employee-paid liabilities, leave the top two fields blank.
7. In the Liability Account field, select Direct Deposit Liabilities, then Next.
8. Set the Tax tracking type to None and select Next.
9. Make sure there are no taxes selected and select Next.
10. Set Calculate based on quantity to Neither and select Next.
11. Set Gross vs. Net to net pay and select Next.
12. Leave the Default RateandLimit fields blank and select Finish. 

Step 2: Recreate the missing or voided direct deposit paycheck

Missing direct deposit paychecks need to be recreated with zero net pay because the total amount should reflect in the direct deposit liability check. It'll help balance your check register, and make sure your employees aren't paid twice.

1. Go to Employees, and select Pay Employees.
2. Select Unscheduled Payroll.
3. Enter the check date and pay period to match the voided paycheck.
4. Place a checkmark next to the affected employee(s) and select Open Paycheck Detail.
5. In the Preview Paycheck window, clear the Use Direct Deposit checkbox. 
6. Enter the payroll item, rate, and hours as it was before.
7. Enter the DD Offset payroll item in the Other Payroll Items section.
8. Enter a negative amount for the DD Offset item equal to the net amount of the paycheck.
9. Press Tab on your keyboard to change the net pay to 0.
10. Select Save & Close then Continue. 
11. Select Create Paychecks.

Step 3: Correct the payroll liability balances

The direct deposit offset is a deduction item and will appear in QuickBooks Desktop as a liability to be paid. You need to make a company adjustment to remove the deduction item amount from your liability balances.

1. Go to Employees menu, and select Payroll Taxes and Liabilities
2. Select Adjust Payroll Liabilities.
3. The Date and Effective Date should match the check date of the paycheck you just created.
4. Select Company Adjustment.
5. In the Item Name column, select the direct deposit offset item.
6. In the Amount column, enter a negative amount equal to the DD Offset amount on the paycheck.
7. Select Accounts Affected. 
8. Select Do Not Affect Accounts.
9. Select OK twice.

Step 4: Send payroll data to Intuit 

You’ll send your payroll data to us to sync.

1. Go to Employees, then select Send Payroll Data.
2. In the Items to Send section, make sure the direct deposit amount is zero.
3. Select Send.
4. Enter your direct deposit PIN.
5. Wait for the message that your payroll session was successful. A confirmation report appears in the Items Received section of the Send Payroll Data window.