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Refunding a Payroll Item

Refunding a Payroll Item

Dec 16, 2025

Refund a payroll item during a regular Payroll (Employee being paid during payroll)

1.   Go to Core/Payroll Item/Error Adjustment

   OR

                                             Employer Error Adjustment

2.   Click on

, find the employee using a few characters of the Last Name, First Name  or Number.  

2a. Locate the Payroll Item you will be processing the refund for and click on

    - OR -

2b. Go to the Dashboard 

 and type in a few characters of Last name, First name or Number then click on employee from the list of names provided.

2c. Click on the Payroll Items tab.                                                                      

2d. Locate the Payroll Item you will be processing the refund for and click on 

.                                              

3.   Go to the Error Adjustments section and click on

 .                                                                                               

4.   Add the refund Amount as a negative number, a Description and a Date (If you wish to process this refund at a later time, the date should be within the period beginning and ending date of a payroll being processed, not the Pay Date.  If you wish to process now leave date blank.)

In order for a refund to take place the Payroll Item Pay Cycle must be the Pay Cycle that is being processed on the Payroll. Example- Payroll Item Pay Cycle is set as Split Between First and Second Pay of the Month. The payroll being processed is the Third Pay of the month. This refund will not be processed during this pay because the Pay Cycle does not match and therefore the refund would not be processed until the next payroll processed for first or second pay of the month. 



5  Click on the 

 button.

6. If there is an Employer Error Adjustment involved, you will need to scroll to the Employer Error Adjustment section and click on

7. Add the refund Amount as a negative number, a Description and a Date (If you wish to process this refund at a later time, date should be within the period beginning and ending date of a payroll being processed not the Pay Date. If you wish to process now leave Date field blank.) 

8.  Click on the

 button.

    **If you want to delete the Employee or Employer Error Adjustment record, click the 

 button.

If there is an employer pickup involved ex-Medicare, check the

box. This will update both Medicare Pickup and Medicare (employee amount paid by board) on the Employee's W2.



9.   Initialize your payroll.  On the Pay Report you will see the refund amount:

10.   Complete the Payroll processing.

Outstanding Payables

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, (money was sent back to district, deposit into Payroll Clearance account), 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. If no check was sent my deduction company and need to short the current payables check, then no Payables Adjustment is needed. 

Refunding a Payroll Item in USPS-R Without Processing a Payroll-(Employee no longer being paid)

This process is normally used when an employee is no longer employed at the district, is not getting paid on the next payroll or if the district wishes to refund the payment to the employee immediately.

1.   Go to Core/ Payroll Item.

2.   Find the employee using the grid and type in a few characters of the Last Name, First Name or Number.  

2a. Locate the Payroll Item you will be processing the refund for and click on 

.     - OR -

2b. Go to the Dashboard 

 and type in a few characters of Last name, First name or Number then click on employee from the list of names provided.

2c. Click on the Payroll Items tab.                                                                      

2d. Locate the Payroll Item you will be processing the refund for and click on 

.                                              

3.   Go to the Error Adjustments section and click on

.                                                                                               

4.   Add the refund Amount as a negative number, a Description and a Date (If you wish to process this refund at a later time, the date should be within the period beginning and ending date of a payroll being processed not the Pay Date.  If you wish to process now leave date blank.) and click on

.

**If you want to delete the Employee or Employer Error Adjustment record, click the 

 button.



5. Go to Processing/Payroll Item Refund.

a. Find the employee using the grid and search by Last Name or Number.

b. Click on

next to the appropriate record. 

c. Click   

d, For Check processing:                                                                                                                                                                                                                  

6. Transfer the PayrollItemRefund.xml file to your desktop or a folder of your choosing to upload the file to your printing software to print out the check.

7. For ACH Processing:                                                                                                                                                                                             

8.Transfer the ACHSXXXXXXXX.txt file to your desktop or a folder of your choosing and upload the file to the bank’s website.     

To get a detail print out of the Refund of Payroll Item for this employee, go to Payments/Refund/Refund Payments, select the employee and click on

To see the Adjustments that were made for this refund, go to Core/Adjustments and search for the employee:

  • Manual Core>Adjustments will need made to remove or correct the Applicable and Total Gross of the Payroll Item that was refunded.

Outstanding Payables

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, (money was sent back to district, deposit into Payroll Clearance account), 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. If no check was sent my deduction company and need to short the current payables check, then no Payables Adjustment is needed. 



Adjusting Employer Paid Amount Without Refund Processing

  1. To enter in the refunded employer amount without processing through a pay go to Core/Adjustments and click

                                                                                                                                                                                         

2. Find the Employee, the Payroll Item from the drop down, the Type-Board Amount of payroll item from the drop down. Enter a Transaction Date or choose date from the calendar.

Enter the refund Amount as a negative figure. A Description can be added if desired.                                                                               

3.. Click 

To include on the Employer Distribution report, use a Transaction Date that is in between the Beginning and Ending Date on the Employer Distribution report

**If the employee has Medicare Pickup, you may also need to add an Adjustment for Type- Board Pickup Amount of Payroll Item.  This will update both the Employee paid portion by the board and the Board's Pickup Amount of Payroll Item.