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NMZ
Level 1

expense allocation using payroll reimbursement

I have decided to reimburse employees for their expenses through the payroll system.  How do I assign the expenses to the proper expense account when reimbursing through the employee paycheck? I have setup in each employee file a category for "non taxable reimbursements". But, I still need to get that reimbursement allocated to the proper expense account for proper tracking.

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Best answer August 10, 2020

Best Answers
NMZ
Level 1

expense allocation using payroll reimbursement

Shouldn't be this difficult.  I will just go back to issuing separate checks to employees to reimburse for expenses. In the long run much easier than trying to add to the paycheck and make all these extra steps.

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4 Comments
john-pero
Community Champion

expense allocation using payroll reimbursement

Using a check to vendor, after the fact record the expense and negative reimbursement account so that check is zero. Or do similar in a depisit where expense will be negative and reimbursement positive.. You can do same in a journal entry though names of line items will not track by vendor. Debit expense, credit reimbursement

NMZ
Level 1

expense allocation using payroll reimbursement

Shouldn't be this difficult.  I will just go back to issuing separate checks to employees to reimburse for expenses. In the long run much easier than trying to add to the paycheck and make all these extra steps.

View solution in original post

Bambrough
Level 2

expense allocation using payroll reimbursement

I had the same question and what I did was adjust the reimbursement amount off of the reimbursement account (in chart of accounts) and add it into the applicable expense accounts. I do this once a quarter so it's not a big deal. That way I don't have to write separate cheques. The Total Pay Report gives you reimbursement totals for whatever period you select. 

Bambrough
Level 2

expense allocation using payroll reimbursement

That is exactly what my accountant said to do and what I did, however, the GST paid on those expenses do not show up on the GST/ITC report. That is really my question. I can run an expense report and they will be there but these expenses, which end up being company paid, are not captured for the refundable GST paid. Writing separate cheques would avoid that but then we lose a convenience of payroll. 

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