• How to undo a direct deposit pay cheque.
• How to make an adjustment for a pay cheque submitted via direct deposit.

Incorrect amounts on a pay cheque already submitted and received via direct deposit.

Note: The Sage 50—C.A. Edition does not allow direct deposit pay cheques to be reversed or adjusted once submitted. Below are potential workarounds if a mistake has been made, assuming that the employee has or will pay back the difference. Make sure to check with your accountant to verify what is the best method before proceeding with any potential workaround.

1. Void the direct deposit pay cheque, then create a new one with the correct amounts. The new pay cheque can be printed and issued if the employee has never received the funds via direct deposit, along with having the process cancelled with the bank.
2. Post a negative pay cheque, with adjustments to vacation, CPP, taxes and other fields as necessary. Keep in mind that this will effect the number of pay periods as well as reporting in regards to taxes and year end.
3. Use a general journal entry to make the required adjustments. This may require unlinking accounts for taxes, vacation, income, and/or other payroll fields if not in the Accoutant's edition, which allows you to post against linked accounts without the need to unlink them. T4 slips may also be affected at year end with this workaround. Refer to Article ID 11727 (How to post to linked accounts) in the Related Resources section for more information.
4. Make the adjustments on the next payroll cheque submitted via direct deposit if both the employee and employer are fine with this.