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Mar 7, 2024 7:51 PM UTC
Question

Direct deposit paycheck returned

We had a payroll direct deposit returned to us due to an account being closed. The direct deposit was returned to our bank and now I am wondering how I give the paycheck to the employee since the original states cleared. Do I reissue a manual check for the amount owed to the employee and use the direct deposit liability account since the taxes are already ran through with the original/initial paycheck that was issued? Not sure how to address the fact of reissuing the paycheck correctly.

1 reply

BigRedConsulting
Mar 7, 2024 8:17 PM UTC

Yes, your solution will work.