USA Year End Bonus pay back

[travers7]

I am not sure if I can do this. The owner of the company I work for was paid a bonus at year end. Now, the year is over and he realizes that he took too much of a bonus and wants to give it back but have the amount he gives back reflected in the 2013 books and reflected on his 2013 W2.

I know I can not book the cash side of this to 2013, but is it ok to record it as a receivable in 2013 reversing the payroll expense and then do manual adjustments to change the W2.

Thanks for any help anyone anyone can provide.

 

[kirby]

Should not be a problem as you will be correcting an error.
Set up a receivable for 2013 for the overpayment and adjust as you outlined above.