Someone wrote in to asked, "I use Enhanced Payroll with QuickBooks Premier for my payroll. Almost all of my employees are on direct deposit. How do I void a paycheck for an employee that had direct deposit processed through Intuit?"
Voiding a direct deposit paycheck processed through Intuit is tricky. There are specific steps to follow and deadlines to meet. You can't simply void a paycheck in QuickBooks and think it will stop the paycheck from posting to employee's bank.
If you must stop or void a direct deposit paycheck you sent to Intuit to process, consider the following:
- Once the direct deposit has submitted for ACH processing, Intuit cannot stop or prevent the direct deposit from being posted to your employee's bank account.
- ACH processing submissions for of direct deposit occur at exactly 5 p.m. (PST), two banking days prior the paycheck date.
- You must submit any paycheck void or stop request before 5 p.m. (PST), two banking days prior to the paycheck date.
Voiding Direct Deposit Paychecks Step-by-Step:
1. On the QuickBooks menu bar, select Employees
2. From the Employees Menu, choose Edit/Void Paychecks
3. On the Edit/Void Paychecks screen, change both the Show paychecks through/from dates to the date of the check
4. Click the Tab key on your keyboard
5. On the Edit/Void Paychecks screen, select the paycheck to be voided,
6. Click Void
7. In the pop-up box, enter "yes," then click Void
8. Review the terms and conditions of voiding the paycheck, if you agree, select the checkbox saying you agree
9. Repeat steps 5 thru 8 for each paycheck needing to be voided
10. Once the check(s) have been voided, close the Edit/Void Paychecks window
11. On the menu bar, select Employees
12. From the Employees Menu, choose Send Payroll Data
13. Click Send. You will note that there are no direct deposit checks to send. (Note: This step connects QuickBooks with Intuit's Server to notify Payroll Services that there has been a check voided so that it will be removed from the previously transmitted direct deposit update.)
14. Verify the voided paycheck(s) by reviewing the Bank Register used to process employee payroll. The memo line should indicate that a modification has been made to the check(s): "Voided paycheck Payroll Service Funds Recovered." On your payroll liability check, the memo line may read: "Adjusted for voided paychecks." (Note: No confirmation report will be sent from Intuit for voided paychecks.)
15. Remember, you must have sent any paycheck void (using the steps above) before 5 p.m. (PST), two banking days prior to the paycheck date. After that time, this process will not stop the processed paycheck from being direct deposited into your employee's bank account.