You are right, and I will make a note in case this happens in the future. You are also correct about the $400 payment and $300 return being the only transactions to hit my bank account.
For now, since the paper check payroll item was in a previous quarter and taxes have been filed, I cannot edit or delete it. Right now, my bank account is reconciled (excluding that payroll item) and the employee has the proper withholding, but there is a discrepancy between my bank balance and the balance in Quickbooks. As a workaround, could I have her next payroll be a zero net paper check? I am assuming the check deposit should be categorized as Payroll:Wages. I think that would have the correct withholding, correct bank balance, correct money in our employee's pocket, and the QB/Bank balance would be settled, right?
