Hi there,
Recording your vehicle allowance is important for the integrity of your bookkeeping. QuickBooks Online helps you keep your payroll information in order. I'd be happy to explain each pay type and deduction in regards to taxes.
Here are descriptions of the supported pay types and deductions in QuickBooks Online Payroll as well as how each impacts federal taxes and forms: Supported pay types and deductions explained. As explained in this article, allowances are taxable.
Please consult with your accountant to record your vehicle allowance in a way that works best for you and your business. If you're not yet connected to an accountant, you can find one in your area here: Find a ProAdvisor.
If you have any other questions, please reach out to our tech support team.
Cheers.
