Payroll Item Refund - Employee

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  modify button
  
  

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 

Process a Payroll Item Refund

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

• Click to process the output file for printing.

Example of an .XML Check Payment:

Example of a PDF Check Payment: (To see tax detail, please go to Payments/Refund Payments and click on employee in the grid)

Payments/Refund Payments

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

Core/Adjustments

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

Create ACH Electronic Payment for Refund of Payroll Item

Select Employee and click on 

 To create the file for an ACH Electronic Payment:

• Payment Option:  Use the  to select ACH source for processing.
• Transaction Date: Current date is default (If adding a date, it must be within the current posting period)
• ACH Source: Choose the ACH Source from the drop down (default source record is HSAACH Source)
• Select 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 users.
• Click on to process the output file for printing.

Example of  an ACH Payment:

Process Refund during regular payroll

Processing a refund of a deduction during a regular payroll: 

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).
• 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 processed immediately.
• Click 
• 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.  

• Enter in the refund amount as a negative

Payables by Item Detail example for Employer Amount: