Setting up Reimbursements

Reimbursements to employees can be included on paychecks for employees and are not taxed, but only included in the Net Pay. 

• In "Payroll Items", select an employee from the list and click on the blue "New" button across from Income.
• Enter a "Title" for the item being created, for example, Mileage.
• Form the "Type" menu, select "Reimbursement".
• By default, income items all post to the same expense account as Gross Pay in Quickbooks.
  • If you wish for the item to post into a different expense account in Quickbooks, select the account from the "Expense" dropdown under the "Accounting" section.

• When you process payroll, enter the amount for the "Reimbursement" under the "Pay Rate" column.
  • The amount entered will not be included in any taxable wages, but will only add into the Net Pay.