The "Reimbursements" payroll type is supposed to be non-taxable, however why QBO is calculating tax on reimbursements?

[3Saccountant]

I set up an expense reimbursement under "Reimbursements" type in payroll and the tax settings window that pops up shows that CPP, EI and Tax will be calculated and this is incorrect.

[JessT]

Hi 3 Saccountant,

You're right, the Reimbursement pay type is not taxable. If you've already double-checked everything and if the item is setup like in the screenshot below, please have our phone or chat agents take a look at your company. In this way, they can investigate this further.

Here's how to contact them:

1. Click on Help in the upper right-hand corner and choose Contact us.
2. Enter a short detail of about the reimbursement and click Let's talk.
3. Choose from Chat or Get a callback.

If you have other questions in mind, please don't hesitate to post back.