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ChristieV78
October 20, 2022
Question

Third party payroll and paper checks

  • October 20, 2022
  • 1 reply
  • 0 views

How do I book a paper check written to employee when a 3rd party payroll service drops the JE int QB?  It looks like the EE was paid 2x.  

1 reply

T
TirzahC
October 21, 2022

Hi, ChristieV78.

 

If we use QuickBooks for accounting and another service to run payroll, we still need to keep track of those paychecks in QuickBooks, since you've mentioned that we're using payroll from a third party isn't possible. The closest workaround that I can think of right now we do handwrite in creating a check for our employee. This way, we can record the data in your account.

 

I'm also adding these resources that can guide us in knowing your ways around QBO Payroll: Get started with Payroll. 

 

If we wish to print the paychecks or paystubs, visit this article for instructions: Print paychecks in QuickBooks Online.

 

It'll be always my pleasure to help if you have any other payroll checks related concerns or anything about QuickBooks. Just keep me posted in the comment section down below. Have a good one!

C
ChristieV78Author
October 22, 2022

Here's how the 3rd party payroll works for this situation.  3rd party provider dumps the JE into QB.  The entry for the employee that receives a paper check has a credit to the checking for the net payment.  The owner then writes a paper check.  So there are two credits to the checking account.  How do I account for the extra credit?

DivinaMercy_N
DivinaMercy_N
October 22, 2022

Hi there, @ChristieV78. I'm here to help you fix the employee paycheck in QuickBooks Online (QBO). 

 

To resolve this, you can make an agreement with the employee to return the amount. Then, void the duplicate paycheck in QBO. You can also deduct that exact amount from the next payroll.

 

If the checks were deposited, you can enter a memo on the second one stating it was the double-deposited check. This way, the funds can be accounted for. Then, you can void that check. If you're unable to do so, please reach out to our Payroll support team to help you with the process. 

 

For additional reference, feel free to check this article: Reduce paycheck wages for an employee who has been overpaid. 

 

However, before performing the recommendations above, I highly recommend consulting your accountant to verify that this would be the best option for you. They are more knowledgeable in handling payroll checks, taxes, etc. This way, we can ensure you'll record everything correctly to avoid messing up your books. If you're not affiliated with one, don't sweat. Use our Find an Accountant tool to look for one. 

 

Keep me posted on how this goes. I want to ensure you'll be able to fix the paycheck of your employee in QBO. Have a good day ahead and take care. 

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