Thanks for allowing QuickBooks to help you with your accounting needs, @natbohman.
I'm here to guide you on how you can pay the underpayment that you have for your employees.
As mentioned by my peer above, you'll need to set up an addition type of payroll item. This way, you can use it in running an unscheduled payroll to cover the unpaid amounts for your employees afterward.
To create a payroll item:
- Go to Lists from the top menu and select Payroll Item List.
- Select the Payroll Item button and click New.
- Choose Custom Setup and click Next.
- Select Addition and click Next.
- Enter your desired name of the payroll item and click Next.
- In the liability account field, enter the same payroll expense account that was used for the original compensation item with which the employee was paid.
- In the Calculate based on quantity window, choose Neither and select Next.
- If the employees do not have a default rate and limit but do have the same rates and limits, enter the amounts.
- Select Finish.
Once done, you can now run an unscheduled paycheck for all the employees that was underpaid. In this case, use the item that you made.
To do that:
- Click on Employees.
- Choose Payroll Center.
- Click on Start Unscheduled Payroll.
- Set the Pay Period Ends and Check Date fields.
- Choose the employee that was underpaid.
- Select the Handwrite & Assign check numbers radio and enter the number.
- Click on Open Paycheck Detail.
- Enter the amount in the Check Amount field.
- Click on Save & Close.
Moving forward, make sure that the employee's hourly rate setup is now correct. This way, you can prevent underpayment.
You can refer to this article for more insights about generating an Unscheduled Payroll: Learn how to create paychecks to pay your employees.
I'm also sharing these recourses with you to guide you in ensuring the accuracy of your employee's YTD transactions:
Never hesitate to get back to me if you need further assistance while working with payroll. It's always my pleasure to help. Keep safe!
