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October 20, 2025
Question

Repay Employee Over Deducted Amount

  • October 20, 2025
  • 2 replies
  • 27 views

Hi All,

 

A few weeks ago, we over deducted too much from an employee's paycheck for health and dental insurance. We now need to pay him back as he is being terminated. How do I do so without messing things ups?!

 

Thanks in advance!

2 replies

Level 9
October 20, 2025

We can adjust the next or final paycheck when you run payroll to refund the employee's over-withheld deduction, Kharrington25.

 

It's important to note that if the overpayment has already been forwarded to the agency, you or the employee has to contact the agency directly to request a reimbursement.

 

Here's how:

 

  1. Create their final paycheck as you would normally do.
  2. Select Open Paycheck Detail.
  3. In the Other Payroll Items section, use the same deduction payroll item.
  4. Enter the amount over-collected as a positive number.
  5. Select Yes on the warning message.

 

If you have more questions, just drop them in the comments, and we’ll assist you promptly.

Level 9
October 21, 2025

Hi, Kharrington25.

 

I just wanted to follow up to check if the resolution we provided helped resolve your issue.

 

Please let us know if everything is now working as expected or if you’re still experiencing any problems.

 

We’ll be glad to assist further if needed.