Payroll error

[debbieg]

We have a church employee that will no longer be paid by us starting in January of this year. Our actual payments are done through our bank's online ACH system. For the first pay period in January, I removed this staff member from the batch. Apparently, I only did it effective for that pay period because the next pay period it defaulted back to her being part of the batch. We can have her write a check to return the money but I wanted to make sure I handled the PC part of the transaction correctly.

the payroll entries for that pay period have not been posted yet. Can I just delete that entire payroll transaction and then everything will be as if it never happened?
thanks,
debbie

[Jeff]

Have you given her the check? If the payroll check is still unposted, you can delete the payroll check and it will be as if it had never been processed.

[debbieg]

The "check" is an automatic ACH payment from the bank for the net amount of pay. I can have her write the church a check for repayment. I was just thinking that if I haven't posted the transaction in payroll, then I could just delete it. Then there is no accounting transaction except the ACH debit from our checking account. I could create a manual accounting entry like this....

CR 01-1110 Checking 700.00
DB 01-5190 Preschool Director 700.00

Then when she writes a check to the church and we deposit it, I would reverse the above transaction to debit the checking account and credit the Preschool director expense account.

does that work?

[JohnDMeyers]

Your strategy sounds ok to me.

1) delete the unposted payroll entry
2) make the entry you show above
3) make a second reverse entry when the check is returned

go for it.

[debbieg]

Thanks for the vote of confidence, John. This is one time that I'm glad to be behind on posting things.

Debbie