Mistakenly made 2 payroll payments to a contractor. The contractor refunded the extra payment. How do I update that transaction as that extra payment will report on 1099?

Good day, anthowil!

It's great to know that you were refunded already. Let me show you how to fix it in QuickBooks Online.

We can void or delete the payment in QuickBooks Online to correct your 1099. Please follow these steps:

1. Go to the Expenses menu, then Expenses.
2. Find the transaction to cancel. From the Action menu, select the View/Edit dropdown.
3. Select Void or Delete, then tap Yes to confirm.

I've added some links you can check. These will show more info on how to prepare 1099 in QuickBooks:

• Create and file 1099s using QuickBooks Online

• Troubleshoot common 1099 issues

Need more help? Don't hesitate to comment below so we can assist you.

Thanks for the response. I actually tried that but I get an error message can't delete transaction. I also tried to void but received the same type of error message.

I'm glad to hear back from you, anthowil.

Did the error ask you to fix other linked transactions to the contractor payment you'll want to void or delete? 

There are times that internet cache files stored in the system can cause unexpected behavior within the regular browser. It can be the reason why they're unable to successfully delete or void the payment. We can do some basic troubleshooting that can fix this issue.

To start, you can try deleting or voiding the transaction using a private (incognito) browser to verify if the concern is cache-related. You can use the shortcut keys to open one:

• Ctrl + Shift + N (Google Chrome).
• Ctrl + Shift + P (Firefox).
• Control + Option + P (Safari).

If you're able to delete the transaction just fine, you can clear the cache in the regular browser or try using a different supported browser if the error persists. 

Here's a link where you can run reports that will help you keep track of your contractor payments: Create and file 1099s using QuickBooks Online.

I'll be here to help you if you have other questions, and any additional information on the exact error you're prompted with is much appreicated. Take care!

These unfortunately did not resolve my issue

Thanks for your assistance I will give them a call.