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Suggested answer

Payroll Overpayment

Posted on by 65

We have an employee who terminated.  We want to collect back the $ amount of the PTO he used but did not earn.  He has agreed to pay back $900 over the next 9 months.  This crosses years.

I know how this is done payroll-wise, I just don't know how to run this through Dynamics SL.

How do I enter his repayments to the company in 2014 in Dynamics SL?  Where can I enter a negative pay amount?

Any help would be super, super appreciated!  Thanks all!

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  • Jill Profile Picture
    Jill 65 on at
    RE: Payroll Overpayment

    Thanks!  That is a great idea, but this is a partial check, so then I would have to reissue another check for the balance.... Yuk.  Anyway, I think the manual adjustment is the way to go.  I miss negative checks...

  • Jill Profile Picture
    Jill 65 on at
    RE: Payroll Overpayment

    Thank you, that is very helpful.  I needed confirmation of the negative check impossibility.  I agree with your assessments above, however I just process payroll.  I don't make policy.  : )

  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    RE: Payroll Overpayment

    What about voiding the PR check even though it cleared the bank.  That would back it out of the PR reports and W2s.  Then go with Rick's payback idea.

  • Suggested answer
    Community Member Profile Picture
    Community Member Microsoft Employee on at
    RE: Payroll Overpayment

    You may have already thought this through but just in case.  This employee not only received that pay but also paid taxes on that pay and the facility paid taxes on that pay.  It now sounds like you are trying to treat this like he did not actually receive that pay because he is paying you back (over time).  My first concern is that trying to even do this in payroll introduces all the tax implications and since it will be over 9 months, it would affect 2 different 1099 years.  My first thought is that you really do not want to go there.  Instead, simply accept the payments from this employee as misc. cash and either hit a non-operating revenue account or hit the labor account that his labor hit and leave the taxes as is.

    Besides these issues, SL payroll does not produce a negative check.  You could enter negative hours or pay but you will not get a check and you need a check to run through the check update process to reduce the employee history amounts and the GL amounts so I do not see a way to run this through payroll regardless and have it work.

    The only way to get this into payroll is to manually edit the employee history and that would have to be done with extreme caution because of the relationship between earnings, earnings subject to each deduction, 941 implications, W2 implications and such.  You would really have to know all the piece to edit and to edit consistently.

    I do not know how much money you are talking about but it must be non-trivial since the employee needs 9 months to pay it back.  I know most employers would simply eat this cost.  It sounds like you allowed the employee to "borrow" against future PTO that the employee ended up never earning.

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