Question

Entries for expenses that are reimbursed thru ADP payroll

Forum|Forum|5 years ago
September 14, 2020
5 replies
54 views

When myself, & other employees, have expenses that need reimbursement we submit them to our accountant who handles payroll (done w/ ADP not QB). When the payroll banking transactions (there are always 2: wages & taxes) hit QB I usually just hit add. However, to track these reimbursement expenses I was told that "the payroll entry will need to be split into payroll and the other expense items being reimbursed for when coding the banking transactions". After adding the payroll banking transaction do I open up the wages expense that was just automatically created & add lines for the reimbursements & reduce the total amount. Ie: Full wage amount paid out & withdrawn from checking account $3000. Employee reimbursed $100 for buying office supplies & another employee reimbursed $100 for buying materials for a job aka cost of goods sold. Do I change salaries & wages amount to $2800, add lines for office supplies $100 & cogs $100? Do I need to enter the separate expenses paid by the employees as their own expense entries to match up w/ the salaries withdrawl entry? Any help would be appreciated as I tried calling QB last week only to be transferred multiple times & then ultimately disconnected before anyone ever started a screen share. I requested a 5 min call back this morning & when that didn't happen I scheduled a call for 2PM but no call & it's almost 4PM. I'm new to this so I just want to do things right & only wish I had a resource to go to with questions. Thanks.

QuickBooks Online

IamjuViel

Level 8

I thank you for the complete details you've shared, @LWAY1.

You have two options to reimburse your employees for business-related expenses. You can create a check or an expense transaction. Just make sure to select a liability account to record it properly in your QuickBooks Online (QBO) account.

If you want to pay them on the day of the transaction, you can create an expense transaction and select a liability account. Here's how:

Go to New (+ ).
Select Expense.
Enter the name of the employee in the Choose a Payee field.
Fill in the amount you owe.
In the Account drop-down, pick the appropriate one (most users create an expense account called Employee reimbursement).
Click Save and Close.

But if you want to record the expense first and pay them later, you can create a journal entry for it. Here's how:

Go to the Plus Icon.
Choose Journal Entry.
On the first distribution line, enter the following:
1. Choose the account used for tracking Employee reimbursement (Additional Pay).
2. Enter how much you paid to the employee and the Description.
3. Select the name of the employee.
On the second distribution line, enter the following:
1. Choose Accounts Payable on the Account column.
2. Enter the amount of the bill or vendor invoice and the Description.
3. Select the name of the Vendor.
Click Save and Close.

You can read through this article for more detailed information: How to reimburse an employee.

The Community team is always available for all your QuickBooks concerns. Cheering you and your business to continued success.

L

LWAY1Author

Thanks for the reply but it doesn't apply to the scenario I described. The reimbursement is paid to the employee in their paycheck (processed via ADP not QB) as nontaxable.

L

lbsunshine

I have the same issue - payroll is handled through ADP. I've tried multiple import settings and none of them accurately transfer ADP to QB online, which I presume is because QB wants people to use QB payroll. So, every 2 weeks I have to manually split the payroll taxes properly, and there is no accounting for expenses already reimbursed through ADP. So, say $100 comes out of the bank account for payroll, but $10 was already reimbursed to the employee for parking. Do I change the payroll to $110 and then add a line item to expense account for $10?

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