Payroll reimbursement associated to an expense

Hello, scacct.

I'm here to help you handle the payroll reimbursement. I'll also include how it is reported on your expense account and Profit and Loss report. 

When setting up the reimbursement item, you'll have the option to select the expense account. This is where you would account the reimbursement transaction on a paycheck. 

If you haven't created it yet, I'll show you the steps: 

1. Go to Lists, then select Payroll Item List.
2. Click the Payroll Item button at the bottom of the window.
3. Choose New. 
4. Select the Custom Setup option for the payroll item.
5. Set the type as Addition, then hit Next.
6. Enter a name such as "Reimbursement", then proceed with Next.
7. Set the Expense account to where you would track your office supply expenses. 
8. Proceed with Next, then continue the setup. 

Next, add the item when you run payroll for that employee:

1. Go to Employees, then select Pay employees. 
2. Check the employee you want to pay and reimburse.
3. Click the Open Paycheck Detail button.
4. Under Other Payroll Items, select the reimbursement item. 
5. Proceed with the payroll as you normally would. 

After running the payroll, two things would happen: 

• There will be a $50 record on the expense item on your Chart of Accounts (Quickreport).
• The Profit and Loss reflects the $50 expense. 

Here's a visual representation: 

If you need a reference about the steps, feel free to check this article: Create a non-taxable reimbursement payroll item.

Ready to file taxes or check out your payroll reports for your employees? You can browse for an article in the QuickBooks Desktop Payroll articles list. 

Need help processing payroll or simply need assistance on the processes in QuickBooks Desktop? Reply with the details below and I'll spring into action to help you out.