Employee mileage reimbursement

The problem with entering mileage on the payroll, is that it deducts all the employee deductions.  This is not right to do this on mileage reimbursement.  I have to create a separate bill for the employee and then pay the bill out separately.  It is not an additional income for the employee.

Has this changed QB?  

Nothing has changed in QuickBooks Desktop, Ceilidh.

In QBDT, the mileage reimbursement has to be set up as an "Addition" payroll item. This is to add the reimbursement to an employee's paycheck. QuickBooks will suggest Payroll Expenses as the expense account for posting the paycheck deductions.

On the other note, what you've performed is correct as an alternative way to reimburse employees' mileage, which is creating a separate bill and paying it separately.

If you need help with other tasks in your account, specifically with payroll, you can visit our QuickBooks Help page. We have collated articles you can refer to that fit your concern.

The Community is always ready to back you up if you may encounter issues while working with your account in the future.

A mileage reimbursement should have no impact on any taxes or other additions and deductions. As an addition, I don't understand how it could reduce deductions or anything other values.