Because we cannot advise you in accounting practices, first discuss this issue with your controller or tax accountant on how to handle this issue for the organization. We have provided a couple of options below as to what the software will allow.
Note: It is your responsibility to determine what is legally allowable for the situation..
If a check is voided, the payroll history will always be adjusted on the same date the original check was issued. The business date determines where it will post in the General Ledger.
Any void of the check will affect taxes that were reported in the prior year, including W2 figures.
A check dated 12/15/2009 if voided while the user is on business date 12/15/2009.
Payroll history will be changed for 12/15/2009. A General ledger entry will be made both to reverse labor and taxes on 12/15/2009. If the fiscal year has been closed, it will first need to be reopened.
A check dated 12/15/2009 if voided while the user is on business date 1/30/2010.
Payroll history will be changed for 12/15/2009. A General ledger entry will be made both to reverse labor and taxes on 1/30/2010.
If the check is reissued through payroll in the current year, all payroll history and GL entries will of course be in the current year.
When you void a Payroll check from a prior year, the message, "Date conflicts with active year. Checks may not be voided." is received. The active year can be changed, and the check voided.
This involves several considerations. Payroll most likely was already rolled forward, and if the voided check would effect those data items, such as vacation or sick pay history adjustments would need to be made in the current year.
In light of all the problems created by changing figures that have already been reported to the government, a better option may be to create a new check through Accounts Payable, or a manual check can be written which would not affect Payroll or the W2's. Please refer to the Accounts Payable Guide for detailed instructions regarding this process.