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Level 2

Employee Reimbursement via Direct Deposit

Hi,

New to Quickbooks. Does anybody know how to reimburse an employee through Direct Deposit? Not a check. Thanks for any guidance! 

Solved
Best answer 11-01-2018

Accepted Solutions
Content Leader

Re: Employee Reimbursement via Direct Deposit

Hello there, jxt3794.

 

Welcome to the QuickBooks family! Thanks for reaching out for support here in the Community. I'd be glad to show you how to reimburse an employee via direct deposit. This can be done in just a few steps.

 

Here's how:

 

1. From the home screen, click Workers in the left navigation bar.

2. Make sure Employees is selected at the top of the page.

3. Choose the employee that needs to be reimbursed from the list.

4. Select the small pencil icon beside of Pay.

5. In the third section, click the blue link labeled Add additional pay types.

6. Place a check in the box for Reimbursement.

7. Click Done.

8. Click Done once more to exit the employee's profile.

 

When you're ready to pay your employee:

 

1. Click Run payroll in the top right corner of the employee page.

2. There will now be a Reimbursement column and field for the specific employee. This is where you'll enter the amount.

3. If you have additional employees, you can uncheck the boxes to the left of their names so only the person to receive the payment is selected.

4. Click Preview payroll > Submit payroll > and lastly, Finish payroll.

 

This article offers a brief overview of pay types in QuickBooks Online: https://community.intuit.com/articles/1430623-pay-types-overview.

 

This info will get you set up to reimburse your employee via direct deposit. Feel free to reach out to me if you have questions about these steps or anything else in QuickBooks. Take care.

 

 

 

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19 Comments
Content Leader

Re: Employee Reimbursement via Direct Deposit

Hello there, jxt3794.

 

Welcome to the QuickBooks family! Thanks for reaching out for support here in the Community. I'd be glad to show you how to reimburse an employee via direct deposit. This can be done in just a few steps.

 

Here's how:

 

1. From the home screen, click Workers in the left navigation bar.

2. Make sure Employees is selected at the top of the page.

3. Choose the employee that needs to be reimbursed from the list.

4. Select the small pencil icon beside of Pay.

5. In the third section, click the blue link labeled Add additional pay types.

6. Place a check in the box for Reimbursement.

7. Click Done.

8. Click Done once more to exit the employee's profile.

 

When you're ready to pay your employee:

 

1. Click Run payroll in the top right corner of the employee page.

2. There will now be a Reimbursement column and field for the specific employee. This is where you'll enter the amount.

3. If you have additional employees, you can uncheck the boxes to the left of their names so only the person to receive the payment is selected.

4. Click Preview payroll > Submit payroll > and lastly, Finish payroll.

 

This article offers a brief overview of pay types in QuickBooks Online: https://community.intuit.com/articles/1430623-pay-types-overview.

 

This info will get you set up to reimburse your employee via direct deposit. Feel free to reach out to me if you have questions about these steps or anything else in QuickBooks. Take care.

 

 

 

View solution in original post

Level 2

Re: Employee Reimbursement via Direct Deposit

THANK YOU!!! I was on the phone with support for 30 mins and they had no idea. I appreciate the step by step!!

Content Leader

Re: Employee Reimbursement via Direct Deposit

You're very welcome. Glad I was able to help!

Level 1

Re: Employee Reimbursement via Direct Deposit

I understand this answer, but how does this record the expense side of the reimbursement?  For example, debit travel expense account and credit employee reimbursements?

Moderator

Re: Employee Reimbursement via Direct Deposit

Greetings, @Keryn.

 

Thank you for joining the QuickBooks Community. I'm here to share some information about how reimbursement is posted in the QuickBooks Online Payroll (QBOP).

 

When you create a paycheck, make a tax payment or create a deduction, the transactions are posted to the default Expense and Liability accounts created by the system. You can find the current payroll preferences by following the steps below:

  1. At the top right, click the Gear icon.
  2. Select Payroll Settings.
  3. At the top, select Preferences.
  4. Select Accounting Preferences.

If you wish to view the current accounts for your reimbursement and wages, just go to the Wage Expense Accounts section, then select the I use different accounts for different groups of employees radio button.

 

If you wish to change the current preferences, here's how:

  1. In the Accounting Preferences window, update the posting of the transactions you want to change.
  2. Click OK.

For additional reference about the payroll settings, you can also check the articles below:

 

Let me know if you have any other questions about reimbursement. I'll be happy to help you out.

Level 3

Re: Employee Reimbursement via Direct Deposit

If you pay the reimbursement through the payroll section it does not consider it a wage? Also are you able to categorize what the reimbursement was for? For example for supplies etc.

Level 2

Re: Employee Reimbursement via Direct Deposit

It won’t tax the reimbursement, but the category question is a good one. Still trying to figure that piece out since it buckets it into “reimbursements”. 

Level 1

Re: Employee Reimbursement via Direct Deposit

Is there a way to run a reimbursement without doing the actual salary/wages? I am not seeing a way to remove the wage. Thanks!

QuickBooks Team

Re: Employee Reimbursement via Direct Deposit

Good day, michelle-mangen.


Welcome to the Online Community. I’d be glad to help run a reimbursement without showing the actual salary/wages.


When creating a reimbursement for your employee, you have to manually adjust the salary amount, so it won’t show in the paycheck. I’ll walk you through the steps:

 

  1. Go to Workers on the left panel.
  2. Select Employees, and choose the employee you’re working on.
  3. Click on the Run payroll tab, then select the pay schedule and choose Continue.
  4. In the Run Payroll page, click the employee's salary amount to open the salary calculator.
  5. Select Skip salary this time only, and click on Apply.
  6. Enter the amount in the Reimbursement column.
  7. Choose Preview payroll.
  8. Click on the Submit payroll button, and choose Finish payroll.


I added a link with detailed information on how to edit salary amount on a paycheck.


That’s it. The resolution steps will help you create a paycheck that only shows the reimbursement amount.


Don’t hesitate to reach out back to me if you have questions about payroll. I’m always ready to lend a helping hand. Enjoy your day.

 

Level 1

Re: Employee Reimbursement via Direct Deposit

Thanks so much!

Moderator

Re: Employee Reimbursement via Direct Deposit

Hello again, michelle-mangen.

 

I appreciate you for letting us know that the steps provided by my colleague @Rasa-LilaM works. In case you need assistance or if you have additional questions with using the QuickBooks product, let me know. Our team is always around for you.

 

Thanks for coming to the Community, I'll keep an eye out for your response. 

Level 1

Re: Employee Reimbursement via Direct Deposit

How do you do this same exercise in the Desktop version of Quickbooks?

Anonymous
Not applicable

Re: Employee Reimbursement via Direct Deposit

Hi there, @Niki Rebel.

 

Thanks for joining on this thread. Allow me to help reimburse your employee through Direct Deposit in QuickBooks Desktop. 

 

You can add this reimbursement on your next Direct Deposit payroll schedule by adding an item for reimbursement. Let me show you how:

 

  1. Go to the Start Scheduled Payroll tab.
  2. Locate and check the employee, then click Open Paycheck Detail tab.
  3. Click the drop-down arrow for the Item Name under Other Payroll Items.
  4. Select Add New.
  5. Select Addition as the type for this payroll item and click Next.
  6. Enter the name for this item and click Next.
  7. Click Next again and select Non-taxable for the Tax tracking type.
  8.  Click Next twice, then Finish.
  9. Once done, enter the reimbursement amount on the Rate column.

This will get you on the right track. As always, you can contact our Desktop Payroll Support if you need assistance in going through the steps.

 

Let me know if you have other questions about reimbursing your employee through Direct Deposit. Hoping this response finds you with a smile. 

Level 1

Re: Employee Reimbursement via Direct Deposit

Hi there,

 

I'm answering the question regarding how to handle the proper expense accounts when the payroll entry will record the item as Reimbursements.

 

I just use a journal entry for this. When I get the receipt from the employee, I create a new journal entry. On the first line of the entry, I credit the Reimbursements account for the amount of the receipt. One the second line, I debit the proper expense account (for example, Parking). In attachments, I attach a scan of the receipt. Then I'm done until payday.

 

On payday, I pull up a QuickReport of the Reimbursements account, in order to see what reimbursements I owe. On the employee's paycheck, I enter the amount to be reimbursed (just as described in the answer that's already listed.)

 

Now, if you pull up a report of the Reimbursements account, you'll see negative amounts for the journal entries and positive amounts for the paycheck reimbursements, so that after payroll you should have a zero total in the Reimbursements Account, telling you that you're all paid up.

 

Hopefully this was clear enough to be of help - it took me a while to figure it out, but I've been doing it this way for a couple of years now and it works great!

Level 1

Re: Employee Reimbursement via Direct Deposit

I've reimbursed employees on their payroll for their expense reports using the Additional Pay "Expense Reimbursements".  How do I then note in QBonline that the expense reports have been paid?  I assume I use "Mark for Payment" but how do I note that it was already paid through payroll? Thanks.

Anonymous
Not applicable

Re: Employee Reimbursement via Direct Deposit

Thanks for joining the conversation, @KAP2,

 

I appreciate you taking the time writing to us about your payroll concern. I can share some insights about adding a description for paid expense reports.

 

Cash basis transactions like checks or expenses are considered paid once they are created. We're currently unable to add a Paid mark to identify that it has been paid through your employees paycheck. As a workaround, you can use the Memo field of the expense to add the description. To do that, follow the steps below:

  1. Open the paycheck (Workers>Paycheck List) or the expense.
  2. Scroll down and go to the Memo field.
  3. Add the reminder or description you want to add.
  4. Click OK or Save and close.

That should get you pointed in the right direction. Please feel free to mention me anytime if you need further help with QuickBooks. Have a great day!

Level 1

Re: Employee Reimbursement via Direct Deposit

Thank you for this.  This is the piece of the puzzle regarding employee reimbursements that I have not found addressed in any other answer:  Not how to pay the employee back, but how to record the expense in the first place!

Level 1

Re: Employee Reimbursement via Direct Deposit

Does this way of reimbursement mess up the payroll dates or just change it manually?
QuickBooks Team

Re: Employee Reimbursement via Direct Deposit

Hi Nira P,

 

Recording your employee reimbursement won't mess up your payroll dates. You can use the same payroll schedule and include the reimbursement for reporting purposes.

 

You can read this article for more details: How to reimburse an employee.

 

You might also want to visit our page for future reference: Employees and payroll taxes.

 

Let me know if you need anything else. I'd be around to help.

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