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Payroll check not cashed, employee paid with cash instead

Forum|Forum|8 years ago
January 29, 2018
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An employee was unable to cash her paycheck for some reason and needed the money ASAP so the business owner took back her paycheck and paid her with cash from cash on hand/change in drawer. What is the best way to document this and still retain the withholding information? Thank you!

Best answer by MorganB

Hello aveda,

Thanks for joining us here in the Community. I'm glad to help get this payroll issue straightened out.

Here's a few steps to get this accounted for correctly:

1. Click the Workers tab in the left navigation bar.

2. Make sure Employees is selected at the top of the page, select the blue link for Paycheck list on the right side of the page.

3. For the check in question, change the number to say "CASH."

Next, you'll need to create a bank transfer within your QuickBooks account to move money from Cash on Hand to your bank account. To do this you'd:

1. Click the Create icon (+) in the top right corner.

2. Select Transfer.

3. Transfer Funds From: Petty Cash/Cash on Hand to.

4. Transfer Funds To: desired bank account.

5. Click Save and close.

This article contains a similar question and answers: https://community.intuit.com/questions/1662497-employee-could-not-cash-payroll-check-issue-at-bank-returned-it-to-bus-owner-who-paid-her-with-cash-instead-how-should-this-be-documented-to-save-withholding-info.

This information will get you back on track. I wish you continued success. Please let me know if there's anything else I can help with.

MorganBAnswer

Hello aveda,

Thanks for joining us here in the Community. I'm glad to help get this payroll issue straightened out.

Here's a few steps to get this accounted for correctly:

1. Click the Workers tab in the left navigation bar.

2. Make sure Employees is selected at the top of the page, select the blue link for Paycheck list on the right side of the page.

3. For the check in question, change the number to say "CASH."

Next, you'll need to create a bank transfer within your QuickBooks account to move money from Cash on Hand to your bank account. To do this you'd:

1. Click the Create icon (+) in the top right corner.

2. Select Transfer.

3. Transfer Funds From: Petty Cash/Cash on Hand to.

4. Transfer Funds To: desired bank account.

5. Click Save and close.

This article contains a similar question and answers: https://community.intuit.com/questions/1662497-employee-could-not-cash-payroll-check-issue-at-bank-returned-it-to-bus-owner-who-paid-her-with-cash-instead-how-should-this-be-documented-to-save-withholding-info.

This information will get you back on track. I wish you continued success. Please let me know if there's anything else I can help with.

A

avedaAuthor

Hi Morgan and thanks so much for your answer. I have tried this and when I try to change the check # to CASH it wiil not accept it. I get a popup box that says it must be a positive number only with no letters, decimals, or negative numbers. It also will not let me change the form or payment from bank to cash on hand. Is there a way to override it so that I can change the check # to CASH? If not, should I void or delete the original check and create another payment from CASH? Thank you!

wrote:
Hello LaPat,

Thanks for joining us here in the Community. I'm glad to help get this payroll issue straightened out.

Here's a few steps to get this accounted for correctly:

1. Click the Workers tab in the left navigation bar.
2. Make sure Employees is selected at the top of the page, select the blue link for Paycheck list on the right side of the page.
3. For the check in question, change the number to say "CASH."

Next, you'll need to create a bank transfer within your QuickBooks account to move money from Cash on Hand to your bank account. To do this you'd:

1. Click the Create icon (+) in the top right corner.
2. Select Transfer.
3. Transfer Funds From: Petty Cash/Cash on Hand to.
4. Transfer Funds To: desired bank account.
5. Click Save and close.

This article contains a similar question and answers: https://community.intuit.com/questions/1662497-employee-could-not-cash-payroll-check-issue-at-bank-returned-it-to-bus-owner-who-paid-her-with-cash-instead-how-should-this-be-documented-to-save-withholding-info.

This information will get you back on track. I wish you continued success. Please let me know if there's anything else I can help with.

MorganB

Hey aveda,

Thanks for trying that out for me. Yes, I recommend voiding the original payroll check.

There's more than one way to get this done. An alternative method to account for paying your employee outside of the regular payroll cycle is to create a cash only bonus. Here's some steps to set this up:

1. Click the Workers tab from the left navigation menu. Make sure Employees is selected at the top of the page.
2. In the upper left, choose the Run payroll drop-down and select Bonus only.
3. Select the applicable settings for the bonus check, then click Continue.
4. Choose the desired employee, then enter the amount.
5. At the bottom, click the small icon beside Payroll options.
6. Select the payroll option, then click Apply.
7. Choose preview and submit payroll.
8. If you select As net pay, the pay-stub will list Employee Taxes Paid by Employer under the pay section.

I'm around if you have any other questions.

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