Incorrect payroll check

[DTS]

I'm reconciling bank statements from March through present and discovered client wrote a payroll check for the gross amount, instead of net. I think I should redo this check to reflect the amount that was mistakenly paid to the employee and let the 'er and 'ee work it out amongst themselves.

Is this how you would handle this? Obviously, 941 is incorrect, so an amended report, as well.

Thanks,

D

[geekgirldany]

How much is it off? The employer could get the employee to pay him back the difference. That way nothing would have to be changed. The extra amount in the original check could be accounted for as a "loan".

[DTS]

Amount off

Geekgirl,

It's off by $120, which is the amount of the taxes. The loan idea may work and sure would save me redoing all the reports for CA, as well as the 941. I'll discuss it with the owner.

Thanks,

D

[veritas]

Gee

I'll bet the employee already pointed out the discrepancy.

[DTS]

Veritas

Do you think so?? She sounds nice enough on the phone.