Void and reissue the check

1. Void the check in PR, Processing, Void Payroll Checks - by employee.
2. Select the check, use Check date as the Void date.
3. Go to PR, Processing, Time Card Entry and re-enter the time card correctly.
   • Use the same date as the original payroll check.
4. Go to PR, Processing, Automatic Payroll Calculation, select the employee and calculate.
5. Go to PR, Processing, Print payroll checks and select the employee.
6. Use the same check number, check date and pay period as the original check.
7. Print on plain paper.

Refund employee for deduction

1. Open CM, Transactions, Instant Checks.
2. Enter the amount that’s the difference between the original net check and the new net check.
3. Clear the Post to G/L checkbox.

Enter a transaction in the bank rec to offset the instant check

1. Open CM, Transactions, Enter Bank Transactions.
2. Select the transaction type Deposit.
3. Enter the amount that’s the difference between the original net check and the new net check.
4. Deselect the Post to GL checkbox.
5. Click Post.

Bank Reconciliation

• When reconciling the cash account in CM, Transactions, Reconcile Checking Account, clear the following:
  • Payroll check
  • Offsetting deposit
  • Instant Check

Example

• The original check included a deduction of 25.00.
• Void the original check for a net amount of $100.00. The system posts the void from payroll, bank reconciliation, and the general ledger.
• Post a new payroll check for the correct amount of $125.00. This system posts to payroll, bank reconciliation, and general ledger.
• Write an instant check to reimburse employee for the deduction of $25.00. The system posts to bank reconciliation only.
• Post a deposit in cash management for $25.00 to offset the instant check. The system posts to bank reconciliation only.

Module postings:

• General Ledger and Payroll. The system posts void of original check for $100.00 and new payroll check issued $125.00
• Bank Reconciliation - 
  
  
  

Payroll tax reports - quarterly 941 and annual W-2 and 940 will be correct.

 Create an Other Pay for the reimbursement

1. Go to PR, Utilities, Maintain Other Pays.
2. Create an Other Pay for the reimbursement.
3. Select the Method as Variable, entered on the time card.
4. For Category, select Individual.
5. Mark the taxable pay checkboxes opposite of those selected on the original deduction.
   • For example, if you checked the FWT taxable box before, clear it on the Other Pay.
6. Deselect the Add to Gross checkbox.

Add Other Pay

1. Go to PR, Employees, Maintain Employees.
2. Select the Other Pays button and assign the new Other Pay.
3. Click OK.

Turn off the deduction for the employee 

1. Select the Deductions button.
2. Deactivate the original deduction.
3. Click OK.

Process time card 

On the next payroll, add the Other Pay reimbursement.

1. Go to PR, Processing, Time Card Entry.
2. Select the employee.
3. Enter the regular time card hours and rate.
4. From the Earnings dropdown, select your Other Pay.
5. Enter the amount you erroneously deducted from the employee in the Gross pay field.
6. Process Payroll as usual.

Payroll quarterly and year-end reports

The steps below offset the affects of the original posting. It doesn't change the employee deduction totals from the original check.

• If you used a W-2 box on the original deduction, manually update the totals on the W-2.
• Review both the 941, 940, state reports, and W-2 forms for accuracy. Make any edits, if necessary.
• For details, review the following articles.
  • W-2 figure calculations
    
  • 941 and 941 Schedule B figure calculations

Helpful Information

• Sage recommends adding a notepad entry in Maintain Employees to record the actions you took.