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Evo-ERP and DBA Classic >> Payroll >> Reverse payroll deductions
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Message started by Anna on 09/22/04 at 07:11:58

Title: Reverse payroll deductions
Post by Anna on 09/22/04 at 07:11:58

An employee requested for IRA $ to be deducted from payroll. Which it was on two paychecks. They never would return application for IRA and are no longer employed. How do I return the $ deducted and make sure the W-2 is correct? Could I write a payroll check for the amount so the payroll taxes would be correct?
Anna

Title: Re: Reverse payroll deductions
Post by rlevasseur on 09/22/04 at 08:36:14

I have recently lost an employee and owed him some insurance deductions that were taken out on a weekly payroll deduction. I went into the deduction screen and entered the amount I owed him in a negative amount. Seems to work for that deduction and I would think that you could do the same with the IRA. :)

Title: Re: Reverse payroll deductions
Post by Anna on 09/22/04 at 10:31:16

After entering the negative deduction, did you process a payroll check? I will not be issuing any more payroll checks. Was the insurance amounts you took out pre-tax?

Title: Re: Reverse payroll deductions
Post by rlevasseur on 09/22/04 at 10:43:38

Anna,

These negative deductions were applied to the employee's last and final paycheck. They are not pre-tax, but I would think that you could redo a paycheck calculating the FIT to determine what entries would be necessary. We only do pre-tax on our Simple IRA and this employee did not qualify.

Rick

Title: Re: Reverse payroll deductions
Post by FRED on 09/22/04 at 10:57:13

Hi, I have a similar issue. An employee who is leaving our company advises me that the Flexible spending account amount (for daycare) that I have been withholding from his paycheck, and reimbursing to him every payroll, can not be justified with receipts - that is they really didn't spend that amount on daycare. My mistake for not getting receipts all along the way!

So I owe SS and he owes SS, sdi and income taxes. If I enter a negative deduction (he has one payroll left) will this correct my tax problems? I don't want to PAY him the deducted amount (I already have...)

thank you,
Terri and Fred

Title: Re: Reverse payroll deductions
Post by RAGINE on 09/22/04 at 12:40:10

Anna,
I also had to re-imburse IRA deductions that were pre-taxed, Rick is correct, you can enter a negative amount in the deduction area and run a payroll check. It seemed to work just fine.
Ragine

Title: Re: Reverse payroll deductions
Post by rlevasseur on 09/22/04 at 12:41:33

Fred,

I think that would be a wonderful question for your accountant to answer. Possibly you could share what your accountant or CPA has advised to the rest of the forum. I am not an accountant, but have gained alot of experience thru working with my CPA running my own business.

Rick

Title: Re: Reverse payroll deductions
Post by RAGINE on 09/22/04 at 12:55:49

Fred,
We have a flexible spending account set up through our health insurance company for daycare & medical reimbursement, they act as the Plan Administrator, which is set up free by some insurance companies. This works great for us because all the re-imbursements are handled through our insurance company. The employee sends in their medical/daycare receipts directly to our insurance company, our insurance company will then fax me a voucher for payment, and when they receive the payment, the insurance company then mails the re-imbursement to the employee.
Ragine

Title: Re: Reverse payroll deductions
Post by Anna on 10/19/04 at 08:29:15

I entered the negative amount in the payroll deductions. The IRA liabilities were transfered to A/P with the orginal check. Do i just enter a credit voucher to get rid of those?
Anna

Title: Re: Reverse payroll deductions
Post by RAGINE on 10/19/04 at 08:51:10

That's what I did
Ragine