How to Reverse Payroll Checks or Direct Deposits using one-click process (Payroll 2.x, version 2018 and higher)

In Payroll Version 2018 and higher (with Payroll update 2.19.3 or later), the Reverse Check button (one-click check reversal feature) allows you to reverse a check or DD in a current or previous period (if Allow Reversal of Checks not in Current Quarter is selected in Role Maintenance, Security Events for that User).

IMPORTANT: The Check Date is used as the posting date for the check reversal. If the original check date falls in a prior quarter or prior year, it is imperative that you ENTER A DATE IN THE CURRENT QUARTER in the Check Date Field, otherwise, the system will use the default original check date as the check reversal date (this requires Payroll update 2.21.0 or later). If you post a check reversal to a closed quarter or prior year, this could affect prior quarterly tax reporting and amended filings may be necessary.

****If the original check had 0.00 earnings and paid employee for overwithheld deductions or taxes, check reversal cannot be done using this method. A new check is needed to adjust the taxes or deduction paid to zero offset by an Advance which will be deducted from employees future payroll taxes. If that is not possible, contact support with specific information.

**If you are reversing a check and then creating a replacement, you must process them in separate batches.**

Caution: If you are reversing in a previous year, do not use the one-click reversal in Payroll. Manually enter the reversal using the current date and reissue the check using the current date. You will have to correct the tax summary as it may double withholding wages using the old manual reversal steps.

See KB 101151 DocLink: Wages may be incorrect if the legacy method of reversing a payroll check is used in Payroll 2.x

Select Payroll> Main> Payroll Data Entry.
Select the pay cycle and starting and ending dates for the check or direct deposit that you want to reverse, and click OK.
If you get the prompt "Do you want to automatically pay employees", select NO.
In Payroll Data Entry, select the employee on the Main tab, then click the Reverse Check button. (Icon is a bright blue U-turn symbol)
Click on the search icon when the pop-up "Reverse Check" appears.
Select the check to be reversed, it will appear on the Reverse Check pop-up.
If Time track was used on the original check, say "Yes" to the Time Track pop-up.
In the Check Date field, ensure you enter a date in the current quarter.
Click the lines tab and review amounts.
Click Accept.
Run Payroll Tax Calculation.
Select Check Register/Update to update transaction.
Update the Daily Transaction Register.

NOTE: If creating a replacement check or new check, use the same data as the REVERSAL check date. This creates a wash in the same period of wages, taxes, deductions, and net check amount. If any of the amounts on the check are changed, it could affect prior quarterly tax reporting and amended filings may be necessary. The check reversal must be processed in a batch separate from the replacement check.