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Lock and unlock net pay when editing an existing paycheck

QuickBooks lets you safely edit an existing paycheck without modifying the tax amounts, wage base, total gross pay, or net pay. By selecting the Lock Net Pay option when editing an existing paycheck, you can make changes to certain paycheck details, such as the earnings payroll items or sick and vacation accrual, without recalculating the entire paycheck. Why is this important?

If the net pay is not "locked," most changes to any item or amount on an existing paycheck recalculates the entire paycheck, which can include tax and liability amounts, wage base, and net pay. This may result in additional payroll liabilities, and you may be required to amend payroll tax forms. Also, if QuickBooks is using a different tax table when you edit the existing paycheck, you may introduce unexpected changes when the paycheck is recalculated.

You can also set the paycheck to Unlock Net Pay mode, which means that any change you make to the paycheck details will recalculate the paycheck. If you're an Assisted Payroll subscriber, you cannot select the Unlock Net Pay option for a paycheck that has been sent to the service.

When is the Lock/Unlock Net Pay option available?

The Lock/Unlock Net Pay option is available only after you create and save a paycheck. You can see the option in the Review Paycheck window.

  1. Find a paycheck that you want to edit.

  2. In the Paycheck window, click Paycheck Detail.

    The Lock/Unlock Net Pay option is directly below the Employee Summary section in the Review Paycheck window. Show me

  3. Click an option button to toggle between Lock Net Pay or Unlock Net Pay.

What you CAN DO in Lock Net Pay mode

When you create and save a paycheck, and then open it in QuickBooks, the paycheck details default to Lock Net Pay mode unless it is still marked "To be printed." While in Lock Net Pay mode, you can do the following without recalculating the paycheck. Example

For example, you issue a regular paycheck to an employee and realize that you applied the wrong earnings payroll item. Though the rate for each item is the same, using an incorrect item can alter financial reporting and payroll data in QuickBooks. To correct the problem, simply open the paycheck in QuickBooks, make sure Lock Net Pay option is enabled, and then apply the correct item in the Earnings section.
  • Make changes to the Earnings table, such as adding an earnings payroll item or changing a class, if class tracking is turned on.

  • Select or clear the Do not accrue sick/vac option and have the balances update.

  • Add or remove sick or vacation payroll item and have the balances update.

  • Select or clear the Use Direct Deposit checkbox.

What you CAN'T do in Lock Net Pay mode

If you attempt to make a change that isn't allowed in Lock Net Pay mode, such as adjusting the tax amounts, you'll either be prevented from making the change or you'll be prompted to set the paycheck to Unlock Net Pay mode. Example

For example, you issue a regular paycheck to an employee and realize that you didn't add an employee loan payroll item in the Other Payroll Items section. In Lock Net Pay mode, you cannot add the employee loan because it would cause the paycheck to recalculate and be out of balance. To correct the problem, you can void and reissue the paycheck, if the employee hasn't deposited it. Or, you can simply create a separate check that includes the employee loan.
  • Make changes to the amounts in the Other Payroll Items, Company Summary, and Employee Summary tables.

  • Select or clear the Enter net/Calculate gross checkbox, if applicable.

See also

KB ID# H_PAY_LEARN_MORE_LOCK_NET_PAY
9/29/2016 6:34:02 AM
PPRDQSSWS403 9138 Pro 2017 af0d8c