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Re-issuing a Lost Paycheck in QuickBooks

How to Re-issue a Lost QuickBooks Paycheck

A bookkeeper wrote to tell us that an employee accidentally destroyed a paycheck. To make it more complicated, the paycheck was the last paycheck for the quarter, and the liabilities for the month and quarter had already been paid. The bookkeeper voided the original paycheck in QuickBooks, and created a new one for the original date. Now, the liabilities are showing up again, awaiting payment.

You can't manage the replacement of paychecks in QuickBooks the same way you manage the replacement of lost or destroyed vendor checks. It's more complicated than that, but if you follow these step- by-step instructions, it's easy to accomplish this task.

  1. Don't void the original QuickBooks paycheck.
  2. Create the employee as an Other Name. You have to use a variation of the name in the Name field, because QuickBooks won't allow duplicate names in your company file.
  3. Use the QuickBooks Write Checks function to write a check for the NET amount to the Other Name entry. Post the check to any expense account (e.g. Misc expenses).
  4. Print the check, write down the check number, and give it to the employee.
  5. Open the bank register and find the original check (the one that was lost). Write down the check number. Edit that original check so it has the same check number as the one you just issued. When QuickBooks asks if it's OK to have duplicate check numbers, say Yes.
  6. Edit the check you just wrote to the Other Name. Change its number to the old check number (the check that was lost or destroyed).
  7. Now that the new check has the old number, void it.

Your records account for the used check number in the voided check, the correct check number for the check that the employee will deposit, your liabilities haven't changed, the W-2 will be correct, the Other Name listing and the expense account you used does not show a balance for this transaction in QuickBooks.

 

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