• 1 Payroll Item Refund - Employee
  • 1.1 Process a Payroll Item Refund
    • 1.1.1 Example of an .XML Check Payment:
    • 1.1.2 Example of a PDF Check Payment: (To see tax detail, please go to Payments/Refund Payments and click on employee in the grid)
      • 1.1.2.1 Payments/Refund Payments
    • 1.1.3 Core/Adjustments
  • 1.2 Create ACH Electronic Payment for Refund of Payroll Item
    • 1.2.1 Example of  an ACH Payment:
• 2 Process Refund during regular payroll
• 3 Payroll Item Refund - Employer

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.

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:

Go to Core/Payroll Items 

• Click on the 

  Open

  

   modify button
  
  
  

  Open

  

On the Payroll Item screen, you will click the 

under the Error Adjustment field

•   You will enter the refund amount in the Amount field as a negative figure (ex. -80.00)

•   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 (Between Beginning and Ending Date) of payroll.  If left blank the refund can be processed immediately.

•   Click 

  Open

  

To process a refund, go to Processing/Payroll Item Refund

Click on 'View' 

 to view the Payroll Item to be refunded or 'Edit'  

 to update the refund record.

Select the employee to be refunded by enter a

 in the check box:

Then click on

 OR

To refund all employees, click on the checkbox under Unpaid Error Adjustments. All records will be selected:

   Then click on

To create the file for check printing:

• Choose your Payment Option   

  • Check Payment (Check Payment is defaulted)

  • ACH Electronic Payment    

• Bank Account:  Can use the 

  Open

  

   to select Bank Account for processing

• Starting Check Number:  Leave blank to automatically increment highest current number

• Transaction Date: Current date is default (If adding a date it must be within the open posting period)

• Choose your Output Format 
  
  

  • XML (Export) The 'XML' option of 'Output Format' is used when printing with outside printing software which will use the Bank Account information entered under Core<Bank Accounts.

  •  PDF (Print)
    
    
    

• Select a Pay Plan:

  • Biweekly

  • Semi-monthly

  • Monthly
    
    
    

• File Name: A File Name will be automatically entered 'PayrollItemRefund201X-XX-XX.xml' or this can be modified by the user.

  • **NOTE**Depending on your third-party printing software, they may not accept this .XML with the wording of 'Refund'.  After completion of creating the file, you can reprint this .XML file by going to Payments/Refunds/Refund Checks and select the employee to create the refund .XML file:

  • Open

    
  • Open

    

  • This .XML file can then be used to create the refund check to the employee using the third-party software.

• Click 

  Open

  

  to process the output file for printing.

This refund amount will then show in Processing/Processing Outstanding Payables/Payables by Item Detail to adjust the Payroll Item payable:

Once the refund is processed, the amount is placed in Processing>Process Outstanding Payables.  If the amount of the refund should not affect the payable total, a Payables Adjustment should be posted.  To do so, go to the Payables Adjustments tab to create an offsetting entry.  Click Create, enter the Employee, the Payroll Item, the Employee Amount and/or Employer Amount, and a Description.  Click Save.  

Under Core, an Adjustment journal entry will be created for this refund:

Select Employee and click on