QB Issue Resolution:
This is how CRA says to fix a mistake.
Part way thru you will find this note
Even if your employee repays you in the same year or a different year, you still have to include the salary overpayment and the deduction withheld on the employee’s T4 slip. You cannot adjust the slip or the payroll records to reduce the total employment income or source deductions by the amount of the repayment.
After your employee has repaid the salary or wages, you can give them a letter confirming the tax year when the overpayment was included in their income, as well as the date, the reason, and the amount of repayment you received. With that letter, the employee will be able to claim a deduction on line 229 of their income tax and benefits return in the year the amount was repaid.
Hope that helps
I would simply deposit the repayment to Salaries : recovered from prior year
Resolution for Issue 'An employee repaid a large cash advance by cheque, how do I record it without causing the next payroll to be a negative and also make sure the T4 is correct?' available: Yes (Solved).
Source: Intuit Community forum.
An employee repaid a large cash advance by cheque, how do I record it without causing the next payroll to be a negative and also make sure the T4 is correct?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.Support for employment income
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