Employee has provided incorrect bank details - how do I deal with this?
After processing a batch (ABA) payroll, one of the pays was bounced back and recorded in bank feed as the employee has provided incorrect bank details.
Do I record this bounced payment as receive money in bank feeds, then pay to the correct bank account through spend money?
Thanks! Jenni
The easy answer is yes.
I would allocate the returned payment to a clearing account ( Payroll clearing perhaps) with a tax code N-T, and when it is paid to the correct employee bank account code it exactly the same way . these will cancel each other out and therefore not affect any of your reporting
Hope this helps
Lisa
