How to reimburse employees in QuickBooks

How to reimburse employees in QuickBooks

Reimbursements are nontaxable payments made to an employee to reimburse them for business-related costs they paid out of pocket. Expenses with tax consequences, such as moving costs, should be exempt. Expenses incurred for restricted or daily business travel are usually included. (Instead of cost reimbursements, industries that need extensive travel usually use nontaxable per diem payments.)

Since these fees aren’t taxable, they don’t show up on W-2 forms or payroll tax records. They’ve also left out of the salary base to measure percentage-based deductions, including 401(k) contributions.

Check out the Employee business cost reimbursements portion of IRS Publication 15, Circular E — Employer’s Tax Guide, for more information on reimbursements. You may give the Reimbursement pay form a unique name or keep the default name we have. Any custom pay form will be available when you add or edit your other workers, in addition to being known for this employee.

  • Full-Service Intuit Payroll: 

 

    • A reimbursement pay form should be added.
    • Select the Employees tab from the drop-down menu.
    • Choose an employee’s name.
    • Click Edit in the Pay area.
    • Select the Compensation checkbox under Extra pay.

Please note that you need to Press Show additional pay types if the Reimbursement pay form is shown. Please contact us if your payment form isn’t mentioned.

  • Enter a recurring sum or give the paid form a unique name by clicking Edit (optional).
  • Save the file.
  • The Reimbursement area appears in the compensation section of the Enter Employee Pay Details page when you generate a regularly scheduled paycheck or an unscheduled check for the employee.

Create paychecks that include the Reimbursement sum and the newly generated Reimbursement pay form. The refund sum is included in the total of the check.

Payroll in QuickBooks Online (all other versions) QuickBooks Online Payroll Full Service, QuickBooks Online Payroll Core, QuickBooks Online Payroll Premium, or QuickBooks Online Payroll Elite are the four versions of QuickBooks Online Payroll available.

  • A reimbursement pay form should be added.
  • Employees can be found in the left navigation panel.
  • How much do you pay this employee? Is listed under How much do you spend this employee? Please press. If you haven’t picked any other payment forms, add them now, or press the pencil icon if you have.
  • The Reimbursement checkbox should be selected.
  • After that, click Done.

The Reimbursement area appears in the compensation section of the Enter Employee Pay Details page when you generate a regularly scheduled paycheck or an unscheduled check for the employee.

  • Develop paychecks that include the Reimbursement sum and the newly generated Reimbursement pay form.

How to reimburse employees for mileage in QuickBooks

To use QuickBooks Online to monitor and reimburse the employees’ business-related expenses. You have the option of paying them now or recording the cost first and paying them later if they used personal funds to cover a business expense. Make sure a provider is set up as a supplier if you need to repay them. Then you can add and pay a bill.

  • Create New
  • Choose between a cheque and an expense.
  • Find the name of your employee in the Payee drop-down menu.
  • Pick a liability account from the Category drop-down menu. You can create a new account if you don’t already have one.

Fill out the rest of the form:

  • Quantity: Fill in the amount you owe your employee. (If you’re monitoring or billing several customers, break down the sum into separate line items.)
  • Chargeable: (Optional) If you want to apply the expense to your customer’s invoice, check the Billable box.
  • The Client: (Optional) If you want to monitor a particular customer or customers’ expense, choose one from the drop-down menu.

Please note that the Customer and Billable fields are not available in QB Simple Start, but you can enable them in QuickBooks. 

  • Choose Save or Save and Exit.

How to reimburse employees for expenses in QuickBooks Direct Deposit

  • Select Staff in the left navigation bar from the home screen.
  • At the top of the list, make sure Employees were selected.
  • From the list, select the employee who needs to be reimbursed.
  • Choose the tiny pencil icon next to Pay.
  • Click the blue Add additional pay types connect in the third line.
  • Make a check in the Reimbursement box.
  • After that, click Done.
  • To exit the employee’s profile, click Done once more.

When you’re ready to pay your employee, do the following:

  • In the top right corner of the employee list, click Run payroll.
  • For each employee, a Reimbursement column and field will be added. This is where you’ll put your money.
  • If you have other workers, uncheck the boxes to the left of their names to ensure that only the person who will receive the payment is chosen.
  • After that, click Preview payroll, Submit payroll and Finish payroll.

Conclusion

To conclude, this blog will help you understand how you can reimburse your employees in the QuickBooks Desktop software. This blog’s whole idea is to help you know that How to reimburse employees in QuickBooks

×

Table of Contents

Scroll to Top