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L
LDO
New Member
July 16, 2026
Question

overpaid employ and now i want to dectuct overpay from next pay check

  • July 16, 2026
  • 4 replies
  • 36 views

I overpaid an employee because i had an hour rate of $100.00 per hour rather than $20.00 per hour. Thankfully the employee is  the one who brought it to my attention. 
This was direct deposit and it is in his account and all the payroll taxes have been paid 

The instructions say to
1 void the check
2. recreate check with correct 
3 (b) deduct the overpaid amount from future payrolls

My Questions:
How do i deduct the overpaid amount from future payrolls when i am using Time TSheets?

I assume his next chek will be for 40+ hours and the corrected net will be for zero or just a few dollars.   Heck, it my go into a third paycheck

 

HOW DO I DO THIS?

Thanks
LDO 

overpaid employee and now i want to dedecuct  overpay from next pay check

4 replies

E
ElykaJen_AQuickBooks Team
QuickBooks Team
July 16, 2026

Since the funds have already been deposited into the employee's account and the payment has been processed, you’ll need to create a new deduction item in QuickBooks Payroll. Once the item is created, apply it to their next paycheck.

Here’s how:

 

  1. Go to All apps > Payroll > Employees, then click Run payroll.
  2. Select a payroll pay schedule for that employee.
  3. Under the Action column, select Edit paychecks.
  4. On the paycheck page, look for the item you had created and manually enter the amount you wish to deduct from this specific check.

 

If the overpayment exceeds the employee's total earnings, do not deduct the entire amount at once. Instead, recover a reasonable portion so they still receive a partial paycheck and the net pay remains positive.

 

For additional guidance on voiding a check, you can refer to this article: Edit, Delete, or Void Employee Paychecks.

 

 

If you have more questions or need additional assistance, feel free to leave a reply below.

L
LDOAuthor
New Member
July 17, 2026

Don’t  I need to void the check?   
I need to make sure he dosent have a history of $100.00 per hour.  I think i need to void or reverse the check so i can change the hourly amount on the bad check back to $20 per hour.

L
LDOAuthor
New Member
July 17, 2026

I want to void the check without effecting the employees bank account.  
I want my reports to show correct pay rate.  The fix that was suggested would not reverse the $100 hour mistake.    
I want to look back 6 months from now and see there was a $100 hour mistake and that the $100 hour was reversed and that the correct $20 per hour was used.     

Can i void the paycheck without effecting the employee’s bank account?
Then can i recreate the check with correct hourly rate?
Then create the deduction so that the money is resolved in his next paycheck?
Thanks
 

L
LDOAuthor
New Member
July 17, 2026

Can I recreate this check correctly after i follow these instructions?
 

  • This paycheck will still show up in your records. However, we'll create an adjustment check with a negative amount to keep your books balanced.
  • You're responsible for collecting payment from your employee or paying them, if either case applies.
  • We'll carry forward tax withdrawals made for this paycheck, if any, to your next payroll run. To get a refund instead, contact us.

 

C
ClarenceCort_BQuickBooks Team
QuickBooks Team
July 17, 2026

Yes, you need to void the original paycheck first to remove the incorrect $100/hour rate from your payroll history and correct your payroll records. After that, recreate the paycheck using the correct $20/hour rate and recover the overpayment through future payroll deductions.

Voiding the paycheck will not withdraw funds from your employee’s bank account, as the direct deposit has already been processed. Instead, it updates your payroll records and adjusts the related tax calculations.

Follow these steps:
 

  1. Void the incorrect paycheck with the $100/hour rate.
  2. Recreate the paycheck for the same pay period using the correct $20/hour rate and set the payment method to Paper Check to avoid another direct deposit.
  3. Calculate the difference between the original and corrected net pay.
  4. Create an After-Tax Deduction (such as “Overpayment Recovery”) and apply it to future paychecks until the amount is recovered.

 

If the overpayment amount exceeds what can reasonably be deducted from a single paycheck, you can recover it over multiple pay periods. Be sure to maintain a positive net pay for the employee during this process.

Feel free to chime back if you need more help.

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