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Payroll Item Refund is used to process a refund of a Payroll Item for an employee. For example, a Payroll Item Refund would be necessary if an employee had an insurance deduction withheld for $80.00 and it should not have been deducted. The Payroll Item Refund allows you to reimburse the total amount or a portion to the employee and reduce the amount sent to the deduction company.
Payroll Item Refund - Employer
If employee is being paid in the regular payroll, then the Employer refund portion can be included on the Employer Error Adjustment field in the Payroll Item. If the employee is NO longer being paid, then you would use the Processing/Process Outstanding Payables/Payables Adjustments option.
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Payables by Item Detail example for Employer Amount:
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To refund an employee who is no longer being paid or a refund needs to be processed before the next regular payroll is ran the following process will need to be performed:
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- You will enter the refund amount in the Amount field as a negative figure (ex. -80.00).
- A description of this refund can be entered in the Description field.
- A particular Date for this refund to be paid can be entered in or chosen. If left blank the refund can be processsed immediately.
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- The refund amount will be listed under Processing/Payroll Item Refund screen.
- Process through your regular payroll as usual.
- The refund amount will be listed on the Pay Report under the Payroll Items for the employee in red.
- After the payroll has processed, the Processing/Payroll Item Refund screen will be blank.
Payroll Item Refund - Employer
If employee is being paid in the regular payroll, then the Employer refund portion can be included on the Employer Error Adjustment field in the Payroll Item. If the employee is NO longer being paid, then you would use the Processing/Process Outstanding Payables/Payables Adjustments option.
Payables by Item Detail example for Employer Amount:
