I have another way on how you can correct this and refund your employees, ajm01998.
We can create payroll corrections, then submit a reimbursement check to refund your Employee. But first, let's add a new payroll item. To do this follow the steps below.
- From Lists on the menu bar, select Payroll Item List.
- Select the Payroll Item button. Then select New.
- Click the Addition item type. Then select Next.
Then, set up the new item:
- Select an expense account, if this will be an advance to the employee, choose an asset account.
- Set the Tax Tracking type to None so that the amounts do not report on tax forms. Next, select Next.
- For amounts paid per mile/kilometer, select the Based on Quantity checkbox. Then select Next.
- Choose to calculate net pay, select Next.
- Enter a Default Rate, then select Finish.
Once done, recalculate your payroll data.
- Click the Employee menu and select Payroll Setup.
- Select Data Review.
- Under the question "Would you like QuickBooks to help you check your payroll data?," select Yes.
- Click Continue.
You can also read this article for more information: Refund an employee for a deduction that was over withheld. For future reference, you can use this article that will serve as a guide to help prepare your tax forms: Year-end checklist for QuickBooks Desktop Payroll.
Let me know if there's anything else that you need with your federal taxes. Don't forget, we're always here to get you covered.
