Void a Payroll Check and Reverse its Entry

Occasionally, you may need to void a check issued or recorded using the Payroll module. This situation can occur if you stopped payment on a check or if you inadvertently wrote and recorded a check for the wrong amount. In order for the Payroll files to reflect the correct earnings, deduction, and tax information, the original check amount must be reversed, and a new check must be issued for the correct amounts. If you are reversing a direct deposit check, enter a direct deposit adjustment amount after all manual taxes are entered. For more information, see Reverse a Direct Deposit Check.

To reverse a payroll check using Payroll Data Entry

Select Payroll Main menu > Payroll Data Entry.
In the Pay Cycle window, in the Pay Cycle and Period Ending Date fields, enter the pay cycle and date from the original check. For more information, see Pay Cycle - Fields.
Click OK.
In Payroll Data Entry, select the employee number. For more information, see Payroll Data Entry - Fields.
On the Header tab, using negative numbers, enter the information entered on the original check in the Days Worked and Weeks Worked fields.
In the Print Check field, select No to indicate that you do not want to print a new payroll check for this entry.
Clear the Auto Ded check box to manually reverse deductions entered for the original check.
Select the Manual Tax check box to indicate that you are manually entering the tax information for this check.
Enter the bank code, check number, and check date from the original check. In the Check Amount field, type the original check amount as a negative number.
On the Lines tab, enter the employee earnings and voluntary deduction information. You must enter the earning and deduction line entries exactly as they were entered in the original check. By entering all hours as negative hours, all dollar amounts will be negative numbers.

Note When reversing a check for which the benefit accruals are based on hours, it is important to enter the hours as a negative number in order to reverse the accrual.

Complete all detail entries, and then click Accept.
In the Manual Payroll Tax Entry window, use negative numbers to enter the withholding tax information. For more information, see Manual Payroll Tax Entry - Fields.
In the Adjust. to Dir. Deposit field, enter the adjustment amount for this direct deposit reversal. The check amount entered must equal the total earnings minus voluntary deductions and taxes. If the amount in the Net Amount field does not agree with the amount in the Check Amount field, an Out of balance message appears.
Click OK.

The payroll check is reversed.