How do I reverse a payroll run? I just set up our first employee and ran the mid month payroll, but now they want to go on contract instead.

Hey there Terri,

Thanks for joining us here in the Community for support on this. From time to time, you'll need to re-run payroll for an employee or two. Knowing how to handle this in QuickBooks Online Payroll is crucial, and once you know the steps you'll be prepared to handle the situation when it inevitably arises again. Let me help you out with reversing or deleting a pay cheque.

If you pay your employee by cheque, this process is very straightforward. You'll just need to follow the steps below and then run payroll again as normal:

1. Navigate to the Employees tab of the Payroll menu.
2. Click on Pay cheque list below Run payroll.
3. Choose the cheque you need to delete and hit Delete.
4. Confirm that you want to delete the cheque by choosing Yes.

If you've run payroll using Direct Deposit the process gets a little more complex, but don't worry - you'll have this sorted out in no time. You'll want to request a direct deposit reversal using the steps below to get this process started:

1. Using the Direct Deposit Reversal form choose to start a New Request.
2. Enter the necessary information and transaction details.
3. Hit Save.
4. When you've received approval for your reversal, you can void the cheque in your records or delete it using the steps above. 

There are some instances where our backend team can stop a direct deposit payroll before it's processed, but you'd need to reach out to our support team almost immediately after you ran payroll. I'll leave the different ways that you can reach out at the bottom of my reply so you can inquire with the payroll team outside of the Community if you wish.

I also want to leave you with some helpful resources that should be reviewed. They contain the steps I've outlined above but also some additional relevant information.

• How to delete a pay cheque

• Reverse a direct deposit

I wish you all the best! Take care and stay safe.