Overpaid employee

[UptownJ1]

I have an employee that did not get clocked out for their shift.  We did not realize this, and payroll was run.  The employee got paid for 24 hours, but only should have been paid for 10 hours.  Is there a way to reverse a payroll for a certain employee?  In addition, I believe they received extra tips they should have not received.

[Donnie-M · Accepted solution]

@UptownJ1 Has the direct deposit went out?  If it hasn't yet, I would go through your online dashboard and click the question/help up at the top right and go through there to get to square payroll.

If you pool tips by hours worked, then yea it will allocate those tips for that day or week on hours.

Now if it has went out.  You can go back into your workday/timecards and edit the employee and the system will automatically recalculate the tips.  You could "run" another payroll, but do not complete it to get the corrected totals/amounts for each employee.  You could then run a 1 off payroll to deposit the "shorts" to the other employees.  And then when you run your next payroll, you would capture the overpayment back and do a manual payroll for that 1 employee.  You just gotta make sure you notify the employee so they expect you to capture it back.  Otherwise you would have to eat that cost.  (fwiiw, I am not a payroll expert in your state or locality or an attorney/accountant), but that is how we do it.

It does happen, but at that point you have to just run a new 1 off payroll to fix it.  You might want to get mad at the employee for not clocking out or not "noticing" their check was really good, but refocus on the root cause and that is just checking those timecards before you run the payroll.

I am sure square payroll has an easier way to fix this, but in the event they don't, there you go.  But, I don't think you can claw back the money from the employees bank in any way with a specific written authorization to ach debit it.

[UptownJ1]

Payroll did go out.

I will take a look at this.  Thanks for responding!