I am trying to add the nontaxable per diem pay to an employee but I am not sure how to do it.
I found the following help post but I cannot find option 3-4
" To add the Nontaxable per diem pay type for an employee:
Can anyone help me with this?
Good to see you here with us, lvarg,
I'm here to ensure that you'd able to add Nontaxable per diem pay.
As per checking the article, it appears that this step is for QuickBooks Online Payroll.
The Nontaxable per diem pay type is only available in QuickBooks Online Payroll version. In QuickBooks Desktop Payroll, you can create a non-taxable reimbursement payroll item.
Here's what you'll need to do:
Here's an article that you can check on for more detailed steps: Create a non-taxable reimbursement payroll item in QuickBooks Desktop Payroll.
As for the specific account that you'd be using upon setting up the payroll item, it would be best to consult your accountant.
As always, you can contact our QuickBooks Support team if you need assistance with the steps. They'll be able to pull up your account in a secure environment and help you navigate using one of their tools.
Here’s how to reach them:
Please feel free to reach back out if you need further assistance concerning your QuickBooks Desktop Pro account. I’ll be here to help.
The method on the link you gave will not work because the item needs to be nontaxable, BUT it must show up on the Form W-2, line 12, code L, according to the IRS's Publication 15. I cannot find a way to make this work in the desktop version. Help?
Thank you for joining the thread, @BusinessChic.
I'm here to share additional information about this nontaxable item and how it reflects on the Form W-2.
As mentioned by my colleague above, we can set up a diem pay item in QuickBooks Desktop (QBDT) as a non-taxable reimbursement payroll item. However, QBDT currently doesn't support the tax tracking type in box 12 code L of the W2 form. As a workaround, you may select a tax tracking type that will allow it to appear on the Box 12 (any code). Then, you may reach out to our Support Team to request for correction and move the amount to the correct code.
To contact support, follow the steps from this article: Contact the QuickBooks Desktop Customer Support Team.
For additional reference about preparing the Form W-2, check out these articles:
Also, read the topics from this link in case you need guides while working with QuickBooks or payroll in the future.
Get back to me if you have any other questions. I'm always here to help. Have a good day, @BusinessChic!
Hello there, Juani1110,
Yes, you need to contact our QuickBooks Team for the per diem correction. However, you don't have to do it each time you create a paycheck.
You can contact us before year end so you only have one correction.
Don't hesitate to post again if there's anything else you need. The Community Team is always open to help you.
I am using QB Desktop Premier 2018 with Enhanced Payroll. I just spent 1 hour 14 minutes on the phone with a QB Team Member asking for help with this per diem correction. What a waste of time - I received no actual answer or correction. Can you please post the steps here so that I can ensure that my W-2s properly record the non-taxable per diem in Box 12 with Code L.
Thanks in advance!
We're unable to provide the per diem correction here in the Community, DeniseG.
Our QuickBooks Desktop support will be able to work on your account remotely. Since there's a correction that needs to be done.
Let me know if you have other concerns.
Between phone calls and online chats, I have WASTED half a work day trying to get the manual correction from QB support team. I have been told that the QB Online version has the capability to support Code L, but the Desktop version does not. Currently, there is no actual correction for the Desktop version. The only "correction" I can come up with is to do a manual OVERRIDE of the code when I prepare the W-2s. That is beyond unacceptable.