Proper method for billing employee paid expenses to my customer.

Hello there, @rbelden.

You can use the timesheet to link the employee's wage to the customer. This can automatically add time to the employee’s paycheck and can be added to an invoice as a billed time to the customer.

Here’s how:

1. Go to Employees, then select Enter Time.
2. Choose either Use Weekly Timesheet or Time/ Enter Single Activity.
3. Enter the needed information.
4. Hit Save and Close.

To add billable, create the invoice in the usual way. The Time tab of the Choose Billable Time and Costs dialog box shows each of the times that you’ve recorded for a customer. To add these times to the invoice, click the Use column for the time. QuickBooks adds each of these billable times to the invoice as separate lines.

To get more ideas about managing your QuickBooks Payroll, you can visit this link: Help article.

It'll be my pleasure to assist if you need more help.

Madelyn thank you for replying but I think you may have replied to the wrong post.  I am referring to reimbursable expenses that were paid by the employee and need to be billed to our customer.  In the end, I have decided to add my employee also as a vendor so that I could create a bill that would expense the charges to the correct account, create a billable expense to our customer and allow me to reimburse my employee via ACH/Direct Deposit as a vendor.

Did this work for you? Do you have to pay their reimbursables separately? Can the reimbursement be included on their employee paycheck or do you create a vendor paycheck for them? 

Thanks for joining this thread, lmoore2.

You can add nontaxable employee reimbursements to paychecks in QuickBooks Payroll. Reimbursements cover business-related expenses that employees paid out-of-pocket and aren't considered taxable income. These payments won't appear on payroll tax forms.

For official guidelines on nontaxable reimbursements, refer to the Employee business expense reimbursements section of IRS Publication 15, Circular E—Employer's Tax Guide.

Initially, you'll need to create a reimbursement item.

Here's how:
 

1. In your top menu bar, go to Employees, then Manage Payroll Items.
2. Choose New Payroll Item, Custom Setup, then Next.
3. Pick Addition and click Next.
4. Enter a name for the Reimbursement item (e.g., "Mileage Reimbursement"), then hit Next.
5. Specify an Expense or Asset account to track your item. You can choose an expense account to track travel or mileage. If the reimbursement is an advance, use an asset account.
6. Set your Tax Tracking Type to None, click Next, then be sure that None is selected under Taxes and hit Next again.
7. If the reimbursement is based on quantity (like miles/kilometers), then tick your Based on Quantity checkbox.
8. Choose to calculate on Net Pay.
9. Enter a Default Rate if applicable, or leave it blank, then select Finish.

Now you'll be able to define accounting preferences if necessary, and run payroll with a reimbursement amount. Running payroll like this allows you to add the amount to your employee's paycheck.

If you're working with taxable reimbursements, you'll want to use the steps in our Add fringe benefits to paychecks article instead of the steps for non-taxable reimbursements.

Please don't hesitate to send a reply if there's any additional questions. Have a wonderful Thursday!

RE: I have already created a payroll item to reimburse my employee with his direct deposit paycheck. I need to get the amount billed to the customer.

The best practice is to keep employee expense reports and reimbursements separate from payroll.

Instead of adding to the paycheck, create a standard bank check with as much detail as is desired and use the customer name(s) on each line item for the items you'll bill back to the customer.