Payroll - Void/Cancelling Direct Deposit

Payroll - Void/Cancelling Direct Deposit




If it is currently before the cutoff time to send (5 PM two banking days before the payroll date) then you can void the DD paychecks and then send those voids like you normally send new checks.

Then create a new batch of DD checks with the corrections and send again.

Recording employee's refund check for a wrong Direct Deposit in QuickBooks Desktop is easy. The steps are simple and easy to follow. 

First, void the employee's paycheck for which they are reimbursing you.


  1. From Employees on the top menu bar, select Edit/Void Paychecks.
  2. Verify the date range is correct.
  3. Select the check you would like to void, and click Void.

Second, send the voided check to Intuit. This will sync your QuickBooks data and our system to prevent any sync related issues in the future.

  1. From Employees on the top menu bar, select Send Payroll Data.
  2. Select Send.
  3. Enter your Payroll PIN. 
  4. Select OK to send.

Third, in the bank register the payroll fund would normally come out of, deposit the amount the employee returned, and use the Direct Deposit Liabilities account to offset the expense.

  1. Go to Banking on the top menu bar.
  2. Select Make Deposits.
  3. Select the correct bank account in the Deposit To field.
  4. Enter the date of the paycheck/deposit.
  5. In the Received From column, select the name of the employee.
  6. In the From Account column, select Direct Deposit Liabilities.
  7. Optional: Write a memo for the deposit (e.g., DD paycheck sent in error and returned).
  8. Add the check number in the Chk No. column (if it's a check).
  9. On the Pmt Meth. column, select cash or check
  10. In the Amount column, enter the net amount of the direct deposit paycheck (the amount returned).

The steps above show bring back the funds in your bank account and should correct your taxes.


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