paying back salary check

[bsbrown]

An employee was mistakenly written two salary checks and deposited both of them. she repaid by writing the church a check for the duplicate amount. I know I will post the check against the salary expense but how do I handle this with the payroll taxes that were taken from the 2nd check. Thanks.

[NeilZ]

An employee was mistakenly written two salary checks and deposited both of them. she repaid by writing the church a check for the duplicate amount. I know I will post the check against the salary expense but how do I handle this with the payroll taxes that were taken from the 2nd check. Thanks.

Did you already report them to the IRS and other taxing agencies?

1. Void the check in Payroll. This will remove the duplicate check's amounts from the W-2.
2. Deposit the refunded amount and, as you pointed out, post against the salary expense.
3. Post the voided check to Funds Accounting.
4. Edit that unposted transaction to remove the line for the checking account, then subtract the amount of the check from the amount listed in the Salary Expense. What remains in the Salary Expense should total the amount of the withheld taxes. You also want to leave the rest of the lines alone as they will return any employer contributions to the expense accounts, and delete the amount of the taxes from the liability accounts.

Does this help ?

[bsbrown]

What about reconciliation when both checks will show as clearing bank yet power church will show as voided?????????????

[NeilZ]

What about reconciliation when both checks will show as clearing bank yet power church will show as voided?????????????

As I said, you're going to edit the transaction. I thought it would have been obvious that you're going to remove any references to a 'voided' check. However, you have to get that information OUT of Payroll, otherwise the Payroll records will be completely off, and you'll be showing more income for the employee.

1. In Payroll (Modify Unposted Payroll), change the reference from the void (Example: 3447-VOID) to PR CHK RVRSL (or something like that). This is how you want it to appear in the Check History for the employee in Payroll. Again, post the Payroll.
2. In Funds Accounting, once you remove the line for the checking account (as I mentioned in step 4 of my previous post) it will NOT show up as part of the reconciliation, since it no longer has any reference to the checking account. Put as much information about why this is being done in the Text Block of the Transaction.

Try it as a test, backup the database then do the changes.

[bsbrown]

Neil - I apologize. I realized there will be no deposit on the payback check and was intending to stop you from responding but you're so fast which I appreciate. Thanks again

[NeilZ]

Neil - I apologize. I realized there will be no deposit on the payback check and was intending to stop you from responding but you're so fast which I appreciate. Thanks again

No problem, I should have included what I said last post in the first post.

However, your bank will show a deposit, otherwise how will you get the money back into the account?