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dvarelacruz
Level 1

If a expense reimbursement is included on a paycheck does QB online automatically not tax the expense?

 
1 Comment 1
Jovychris_A
Moderator

If a expense reimbursement is included on a paycheck does QB online automatically not tax the expense?

Thanks for posting in the Community, @dvarelacruz.
 

If you made a reimbursement done under an accountable plan up to the IRS standard mileage rate, there's no taxable compensation reportable to employees or subject to payroll taxes. In most cases, expense reimbursements are not taxable. Yes, it won't tax the expense in QBO.
 

The crux of the matter is who has the expense receipts, if you get them, then you are reimbursing the expense, and it is not 1099 reportable if we're referring to Vendors.
 

If the contractor keeps it as his expenses, then the amount you will pay him is reportable to 1099.

Here's a video article on How to Record Expenses: Billable & Reimbursible.

Should you want to check employee reimbursements,  use this article as your reference: Reimburse an employee.
 

For other questions and clarifications, leave a query through this post. I'm always here to help. Enjoy your day!


 

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