For example: A pay-in-advance Medical deduction of $150 was deducted from the employee paycheck for the upcoming month of coverage. The employee quit or was terminated. We need to refund the $150 on the next/final paycheck. What is the best approach to accomplish this refund?
Best answer by pbennett
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+1
i would create a paycode and make sure the taxaction is correct to reverse what was done on the deduction. then user the paycode to refund the employee
If you wanted to use the same deduction code, you could do the last pay as an Adjustment Type and enter a negative amount as shown below.
Aaaww Yes! There is that pesky subject of taxation. This was a pre-tax deduction.
Thank you PBennett ;o)
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