You can easily void and re-create/re-print checks using the Void & Re-Issue Check tool in your Datatech Software.
If the check is from a prior quarter, the software will allow you to void the check with the original check date when you are making an amendment to the wages. When re-issuing the check, you can also date the void in the current period so the void & re-issue offset each other.
When you are in a new/different year, however, the software does not allow a check to be voided. The following article will discuss two situations that require a re-issued check and how to handle each situation.
Why can't a check be Voided & Re-Issued in a different year?
The main reason a check cannot be voided and re-issued in a different year is because tax rates, including Federal and State Withholding and SDI rates, may change.
For example, the California SDI rate increased to 1.2% (from 1%) in 2021. If a check was voided and re-issued, the employee would receive a different net check.
Even if the tax rates have not changed, the software doesn’t allow a check to be voided if your currently assigned payroll year is different than the voided check.
Employee Lost The Check
If an employee loses a check, the best practice for re-issuing the check is directly from your Checkbook.
Go to Payables > Checkbook. Select the bank account that you want to re-issue the check from. Then, click on the Direct Expense button.
Use the 0 – No Vendor account and then enter the name and address of the employee in the Name/Addr text box.
Verify/enter the Check # and Date. Then, enter a description to reference the original check # this is replacing. Enter the Net Amount of the check to pay the employee.
For the G/L #, you may want to use a Suspense/Clearing account or you may use any account, as the offset for the original check will zero out the payment.
To reverse the original lost check, use the same Direct Expense check button, entering the original check #. Then, enter the amount with a (-) negative amount. This will add that money back into the Checkbook balance like a void.
If your payroll staff does not have access to the Checkbook, access can be granted to just the Direct Deposit check entry. Contact our Support Dept. for assistance with enabling this user permission.
If you don’t have the Payables module in your Datatech software, you may do the same type of transaction in whichever accounting software you use.
Check Needs a Correction
If a check needs a correction and you have not yet reported any payroll tax forms, you may re-open the prior year, issue voids/corrections and re-close.
Follow these steps to complete this process:
1) Make sure no other users are entering or creating checks. When you re-open a year, that years tax rates become the current rates for calculation.
2) Go to Payroll > Utilities > Fix Employee Totals. Click the Change Qtr/Year button and enter the 4th quarter of the prior year (2020).
3) Void, Re-Issue and/or Print corrections as needed.
4) Re-close the Qtr/Year using the Payroll Tax Reports Control Center. To re-close, however, you must first delete the prior year record. Follow these instructions to delete that record:
- On the Payroll Tax Reports Control Center, while in the Year field, press the Shift key and F2.
- Answer Yes to delete the prior closing.
- Finally, go through the closing process again.
5) Update the current Qtr/Year Totals. Return to the Fix Employee Totals utility. On the Change Qtr/Year, enter the current quarter and year to update the Employee File Totals back to the current period.
If you need any assistance with this process, please email our support team at Support@DatatechAg.com.