I accidently sent a contractor payment to the wrong checking account. I mixed up one number. What do I do?

I've got your back, @blyons-rpmexteri!

To resolve your case, you can cancel or void paper or direct deposit payments.

When you void a payment, it reduces the payment amount to zero. This may require you to make adjustments to ensure your accounts are balanced. However, canceling a payment doesn't stop a direct deposit from processing or returning funds to you. 

It's important to note that once payments have been offloaded or processed, they may be unable to be voided. You can determine if a payment can be canceled by reviewing your direct deposit lead time. Here's how:

1. Go to the Gear icon, then select Payroll settings.
2. Under the Direct Deposit section, you'll see your funding time above your direct deposit limits.

If your payment was unprocessed, follow the steps in the "Delete or void unprocessed direct deposit payments or non-direct deposit payments" section under the QuickBooks Online dropdown in this article: Void or cancel contractor payments.

However, if the direct deposit payment has been processed, you can no longer void, cancel, or delete the transaction. But you can create a Journal Entry to offset a contractor's direct deposit transaction amount. I recommend consulting your accountant's guidance to ensure your books are correct.

If you paid through QuickBooks Bill Pay, you can cancel the payment by following the steps in this article's "How to cancel a scheduled bill payment" section: Learn about QuickBooks Bill Pay.

In case you want to set aside federal withholding for contractors, you can check out this article for guidance: Deduct federal backup withholding from contractors.

You can always get back to us if you need additional help with your contractor payments. The Community is always ready to assist. Stay safe!