Refunding a deduction

How to refund a deduction to an employee.

• Payroll
• Payroll Processing
• Deduction Refund
• Payroll Start and Status
• Earnings and Deductions

• The deduction withheld too much of the employee amount and the deduction must be refunded.

Create a miscellaneous payroll and process the deduction refund function.

1. Go to Payroll Start and Status: Human Resources/Payroll > Payroll > Payroll Processing > Payroll Start and Status
2. Click Start, click Start again and select Miscellaneous in the Run Type drop-down menu. Define the Warrant, Payroll Check Date, Payroll Begin Date and Payroll End Date. Click Accept, then click Return
3. Click Earnings and Deductions, select Yes to the Payroll Process prompt to verify the appropriate payroll is active
4. Click Add, enter the Employee Number TAB into the Check field and enter 0. On the following screen enable the Generate Deduction Refund setting and enter the Refund Pay Type. (Instructions on how to build the refund pay type included in the Deduction Refund Instructions link) Click Accept
5. Search for the deduction record that will be refunded and click Refund in the menu.
6. Click Return and click Search, click Accept, click the Withholding tab, there will be a negative deduction line for the refunded deduction. Click on the Pay tab, there is a positive pay line for the negative employee withholding on the deduction
7. If taxes need to be taken, add the tax deductions on the Withholding tab
8. Proceed with the normal payroll processing steps to complete the payroll

Can a Deduction Refund check be processed as a direct deposit

Deduction Refund Instructions

As an alternative, if the employee is still active, and can wait for the next payroll to get the refund, you may enter a negative deduction line in the payroll.  After generating the payroll:

1. Access Earnings and Deductions (Payroll > Payroll Processing > Payroll Start and Status > Earnings and Deductions)
2. Search for the employee
3. Click the Withholding tab
4. Double-click on the deduction line
5. Click Update
6. Enter the negative Employee Amount (and/or Employer Amount)
7. Click Accept