Banking
There's no need to modify the paycheck or item, smpri. Instead, we can accurately track and document the actual cash flow. Let me break down the details for clarity.
Since you've already recreated the $100 payment, create an expense transaction for the $400 payment with your employee as the Payee. This will account for the expense within your Chart of Accounts. You can refer to the image below: 
Then, record a Bank deposit to account for the $300 returned payment you received from your employee. Following this process ensures your QuickBooks records match your bank statements.
Once that's complete, categorize all remaining transactions and proceed with reconciliation. Moreover, if you're unsure about the correct categories or accounts to use, I recommend consulting an accounting professional to provide further guidance to ensure you're on the right track.
Need more help categorizing payroll transactions? QuickBooks Live Expert Assisted offers personalized guidance from certified experts on bookkeeping, financial management, and streamlining processes. By accurately classifying transactions and maintaining balanced accounts, businesses can improve employee management and free up time for growth.
I'll be sharing with you some resources to streamline your account reconciliation and payroll workflow management:
- Fix issues at the end of a reconciliation in QuickBooks Online
- Handle a direct deposit paycheck that was not received by an employee
- Run payroll reports
Remember, you're always welcome to post any additional queries about reconciling payroll transactions or other QuickBooks concerns. The Community and I will be here to ensure you have all the support you need.
