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Shorted employee $.75/hr OT pay on multiple checks. How to correct after checks cashed?

Overtime rate should have been $24.75 but actual rate used was $24. Discovered error after multiple checks were calculated with wrong rate and checks have been cashed. How do I correct without making YTD hours worked incorrect?

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Best answer 09-09-2019

Accepted Solutions
Anonymous
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Hi there, maryg.  You can run a special payroll using th...

Hi there, maryg

You can run a special payroll using the same overtime item or create a new payroll item for the discrepancy of .75 OT rate. This would make your report more categorized and detailed.  

Below are the steps to create a payroll item:

  1. Go to List and select Payroll Item List.
  2. Click the drop down arrow next to Payroll item on the bottom part.
  3. Choose New and select Custom Setup.
  4. Click Next and select Wage.
  5. Click Next then Hourly Wages.
  6. Click Next and choose Overtime Pay.
  7. Enter the item name, click Next and select Custom.
  8. Enter the .75 rate then click Next.
  9. Click Finish.

Once done, create an unscheduled payroll using the new payroll item. Also, print and issue the special payroll checks manually to your employees.

Let me know if you need anything else about QuickBooks. 

View solution in original post

3 Comments
Anonymous
Not applicable

Hi there, maryg.  You can run a special payroll using th...

Hi there, maryg

You can run a special payroll using the same overtime item or create a new payroll item for the discrepancy of .75 OT rate. This would make your report more categorized and detailed.  

Below are the steps to create a payroll item:

  1. Go to List and select Payroll Item List.
  2. Click the drop down arrow next to Payroll item on the bottom part.
  3. Choose New and select Custom Setup.
  4. Click Next and select Wage.
  5. Click Next then Hourly Wages.
  6. Click Next and choose Overtime Pay.
  7. Enter the item name, click Next and select Custom.
  8. Enter the .75 rate then click Next.
  9. Click Finish.

Once done, create an unscheduled payroll using the new payroll item. Also, print and issue the special payroll checks manually to your employees.

Let me know if you need anything else about QuickBooks. 

View solution in original post

BRC
Established Community Backer ***

There's no need to create a special payroll item to pay t...

There's no need to create a special payroll item to pay the missed wages.  Depending on the local payroll laws there may not be a need to create a special payroll.
BRC
Established Community Backer ***

You can create a special check for the missed wages or in...

You can create a special check for the missed wages or include them on the next paycheck (if that's OK with your employee.) You can use using really any wage item for this, but probably the overtime item you usually use.

Either on a special check or a regular paycheck, edit the details from the create paycheck workflow and then add a special/additional line item on the earnings table using the overtime item you usually use. Change the rate to .75 and enter the number of OT hours that were paid at the wrong rate.

If you end up adding this missed pay to the next payroll, and there is OT for that payroll at the full OT rate, then you'll use the OT item twice on the check at different rates. When you do this, QB will automatically list the OT item on the pay stub twice.

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