Employee expenses tax codes

Yes, Su. There's a way to prevent your employees from selecting a tax code by unchecking the Employees can override tax code when submitting expense claims option in your Employee Portal Settings.

Here are the steps to follow:

1. Navigate to the Payroll menu and select Payroll Settings.
2. Click on Employee Portal Settings.
3. Uncheck the Employees can override tax code when submitting expense claims option.
4. Hit Save.
    

After following these steps, your employees will no longer be able to select a tax code when submitting their expense claims. 

Once you review the expense claims request, select the appropriate tax code, if necessary, as no tax code will be automatically assigned. 

In response to your second concern, currently, we do not have a report that details the expense claims and the tax codes associated with them.

To enhance our platform and better serve you, we encourage you to submit your feedback and request for this reporting feature to our product engineering team. 

Here's a sample screenshot of how to send it.
 

For future reference, you can create a Pay Run Audit Report to get a detailed overview of payroll runs, including employee hours, wages, and deductions.

If you have any other questions about managing your employees, we are here to help. 

Hi, thank you for replying.

Does this part of your response:

"once you review the expense claims request, you'll have to choose the appropriate tax code if necessary, as no tax code will be automatically added"

mean that no tax codes will be added on any expense and they will all need to be manually added when we do the pay run? i.e. every single expense line still needs to be manually checked and set? That's still not suitable when we have a few hundred expenses logged.

Yes, Su WM. No tax codes will be automatically assigned to any expense. I'll share some details below.

You’ll need to manually enter tax codes during the pay run, each expense line will require individual review and adjustment. In addition, you can always seek professional assistance from your accountant regarding the tax codes. If you're not affiliated with one, you can use our accountant tool to look for one in your area.

On top of that, you can pull up and customize a payroll report in QBO to give you the flexibility of checking the details of entered expenses. Here's an article you can visit in the future: Run payroll reports.

Feel free to drop by this thread again if you have future concerns about running your payroll or employees, Su WM. I'm more determined to help.

I have done some more testing and checking and have the following:

The "Employees can override tax code when submitting expense claims" box is already unchecked on our account, so I cannot see how anyone is changing the tax code. I have tested it myself and with one other, and we cannot change the tax code. I will ask my staff to show me what they do, when I next see one with the wrong code, but if no-one is changing or removing the tax code, then I would suggest this is a bug in QuickBooks and not user error. I will check this and come back to this thread when I have more.

As for the report on expenses, I have found that there is one:

Create a pay run

Go to Draft Audit Report

Remove all fields ticked

Add Expense reimbursements (on the left hand column)

Run report

This lists all expenses on the pay run, and shows the tax code listed against it. Export the report to Excel, then delete the pay run.

So while it isn't under the Reports section, it can be done as a report.