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October 16, 2024
Question

Dependant Care FSA Child Care Checks Not Cashed

  • October 16, 2024
  • 1 reply
  • 0 views

We have an employee that earlier this year had a certain amount deducted from their paycheck to pay for child care costs. Payment was then made directly to the daycare.

 

However there are some checks that were never cashed by the daycare.

Can this money be reimbursed back to the employee?

1 reply

October 16, 2024

Yes, the money can be reimbursed to the employee if the expenses are eligible for reimbursement under the Dependant Care FSA plan, Saphire605.

 

First, you'll need to determine if the unclaimed Dependent Care FSA expenses are still eligible for reimbursement. This will depend on the specific rules of your company's plan, so you'll need to consult the plan documents or speak with the plan administrator.

 

Here are the steps to handle this situation in QuickBooks Desktop:

 

  1. Navigate to the Employees section and select the Employee Center.
  2. Double-click the employee's name.
  3. Go to the Payroll Info tab.
  4. From the dropdown list under Additions, Deductions, and Company Contributions, select the appropriate item to add.

 

When you create paychecks, the reimbursement item will appear in the Other Payroll Items section of the Preview Paycheck screen. Enter the reimbursement amount on the paycheck as needed.

 

For more comprehensive guidance, refer to article: How to reimburse your employee in QuickBooks Payroll.

 

As always, it is recommended that you consult with a bookkeeper or accountant to ensure that these transactions are recorded correctly in QuickBooks Desktop and that all the rules specific to your company's plan are being followed.

 

Additionally, check these resources to run payroll reports and ensure your accounts remain balanced and precise:

 

 

We're glad we could help you resolve the issue of reimbursing your employee for the uncashed childcare checks. Feel free to return to this thread if you have follow-up questions, we're always here to help you with your tax and bookkeeping needs.