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RME April
December 31, 2022
Question

Entering a Payroll Reimbursement from an Employee

  • December 31, 2022
  • 1 reply
  • 0 views

We have automatic payroll through a 3rd party and track it via Quickbooks Enterprise desktop payroll.  We had an employee take a leave of absence but he was paid twice when he had not actually worked via direct deposit.  The payroll company said they could not reverse the paycheck deposits so the employee paid us back with his credit card. The payroll company did reimburse us for the tax withholdings.  I recorded the deposit from the employee but I am not sure how to record the tax reimbursement and payroll liability.  I can't void the paychecks as they were posted. What is the best way to do this?

1 reply

katherinejoyceO
katherinejoyceO
January 1, 2023

Welcome to the Community, @RME April.

 

Great job in recording the deposit from the employee that you overpaid the last payroll. Now, for you tax reimbursement and payroll liability, you can adjust the payroll liabilities in QuickBooks Desktop.

 

I'll show you how:

 

  1. Go to the Employees, then hover to Payroll Taxes and Liabilities. 
  2. Pick Adjust Payroll Liabilities., then select the last paycheck date affected in the Date and Effective Date fields.
  3. In the Adjustment is for: section, select Employee Adjustment to correct your employee’s YTD info. 
  4. Select the employee's name. 
  5. Select the payroll item you want to adjust under the Item Name column, then enter the Amount of the adjustment. 
    • If the item is under-withheld, enter a positive amount to increase. 
    • If the item is over-withheld, enter a negative amount to decrease.

 

After that, continue to:

 

  1. Enter the amount under the Income Subject to Tax column if you need to make a wage base adjustment, them add a note about the adjustment for your reference under Memo. 
  2. Select Accounts Affected, then OK.
    • Select Do not affect accounts to leave balances unchanged for the liability and expense accounts. The adjustment will only change the year-to-date amounts on your payroll reports.
    • Select Affect liability and expense accounts if you want the transaction to reflect in the liability and expense accounts.

 

Once done, welect OK to close the Affect Accounts window.

 

That's it. You can also check out this artcicle for your reference: Adjust payroll liabilities in QuickBooks Desktop Payroll.

 

Feel free to seend your reply below if you have additional concerns about recording your employee's reimbursement. Take care!

 

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