We ran our first payroll with a check date of 10/23. We purchased checks from Intuit and they were formatted incorrectly. The checks returned before they ever hit our bank account (the account number was wrong). To fix this quickly, we paid the employees with cash we had in our pockets and with cash we withdrew from the business bank account. How do I record this? I've seen a few articles but nothing seems to make sense for our unique situation. Thanks!
Hello there, @rjweldranch.
If you've paid your employee using a physical check and let him or her cashed it out, you can just create a regular payroll. Just make sure you're using a paper check for recording purposes. While, if you've paid your employee using a regular paycheck but was unable to cash it instead you've paid her with cash. Let me share some details on how to document this transaction.
First, let's run a regular payroll:
- Go to the Employee's menu.
- Choose Employees.
- Select the Run Payroll button.
- If you're using a different pay schedule, choose the specific pay schedule for the paper check.
- Click Continue.
- Mark the name of the employee.
- Enter the employee paycheck, then click Preview Payroll.
- Hit Submit Payroll.
- Click Finish Payroll.
Once completed, let's create a bank transfer in QuickBooks to account for the movement of money from Cash on Hand or Petty Cash to your payroll bank account.
- Click the Plus Icon (+).
- Choose Transfer.
- From the Transfer Funds From the drop-down list, select the bank account that the funds are coming out of.
- From the Transfer Funds To drop-down list, select the bank account the funds are being deposited into.
- In the Transfer Amount field, enter the amount being transferred.
- Edit the Date.
- Add a memo on the Memo field to indicate the reason for the bank transfer.
- Click Save and Close.
Alternatively, you can create a journal entry to record the entire transaction. For more detailed steps, you may check this article: Create a journal entry.
For additional reference, you can check these links:
If you're referring to something else or you have other questions, feel free to leave a post below. I'm always here to help.