****Use the new feature Payroll Check Reversal button available in Payroll 2.x versions.

If a check has already been updated using the legacy method of entering negatives manually in payroll data entry, the files Tax Summary files will need to be edited by drilling down to the lowest window. A BACKUP is required before modifying the records!!! Please refer to KB 101868 DocLink: How to edit employee wage and tax history in Tax Summary If unsure how to fix, call support to assist with properly editing the files affected.

To use the new Payroll check Reversall button (See related resources below)

1. Select Payroll, Main, Payroll Data Entry.
2. In the Pay Cycle window, select the pay cycle and enter the starting and ending dates and the check date.
3. In Payroll Data Entry, select the employee.
4. Click the Reverse Check button.
5. In the Reverse Check window, enter the check or direct deposit number.
6. Select the Copy Memos check box to copy any memos entered for the original record to the reversal record.
7. Click OK. The check information appears in the Payroll Data Entry window, but the amounts are now negative.
8. You can click Taxes to view the tax details, but you cannot edit the amounts.
9. Click Accept.
10. Print any applicable payroll reports.
11. Print and update the Check Register and Daily Transaction Register.

The payroll check or direct deposit transaction is reversed. The original record in check history and post to general ledger are not changed. A new entry in the Check History file reflects the adjustment, and the reversal is posted to the general ledger using the check date entered on the Pay Cycle window.

• Note If you reversed a direct deposit transaction that has already been processed, you must also contact the bank to have the deposit removed from the employee's account.

If this was a prior quarter and a replacement check is needed, use the same date/period to maintain the same amounts reported on that quarter tax reporting. If any of the wages, deductions, taxes or net amounts change on the replacement check, quarterly tax reporting may need amended quarter reports filed.