Quickbooks per diem

Hello there, @Krisabitz.

I can provide some information about tracking per diem in QuickBooks Online (QBO).

When we talk about Per diem, these are payments not considered as wages and therefore non-taxable. However, your payments will be taxable if the following apply to you:

• Payment is more than the allowable federal per diem rate
• You did not file an expense report with your employer
• Your expense report did not include the date, time, place, amount, and business purpose of the expense
• Your employer gave you a per diem and didn't require an expense report.

If the above information is met, per diem is subject to income tax withholding and payroll taxes. But, if not, recording per diem in QBO is an easy process. You need to create a payroll item and then add the amount to the paycheck. 

Here's how:

1. In the left menu, click Payroll.
2. Go to the Employees tab.
3. On the Employees page, select the worker you're working on to open its profile.
4. Click the Pencil icon for Pay under Employee details.
5. Click the Add additional pay types link under the How much do you pay this employee section.
6. Locate and select the Nontaxable Per Diem Recurring amount.
7. Click on Save, then Done.

Once done, the pay type created will show on the Enter Employee Pay Details page. From there, type in the correct amount.

To learn which pay type to choose, visit this article: Add or change pay types. It contains descriptions of the pay types and how it impacts federal taxes and forms. 

You can also read this resource that provides detailed information about recording non-taxable payments in QBO: Reimburse an employee.

For future help, you can run payroll reports to get a closer look at your business finances. 

Let me know if you have other questions about payroll. I'll be around to assist you in case you need it. Have a great day.

thanks!  okay, so based on that, I do need to make his per diem taxable, because we are over the federal rate and we don't make him fill out an expense report.  So that being said, how do I do it?  I set up the 'taxable per diem' pay type under all of his pay information.  I put $31.25 in the recurring amount.   But when I go to do his weekly timesheet there is not any place to put it in??  It doesn't appear in the drop down as a 'pay item'?

I can share some information about adding this per diem to your employees, @Krisabitz. 

You can only track the service worked on a (customer/job) while using a weekly timesheet. After creating the payroll item, add the amount to the paycheck to record the per diem.

Here's how to add it to your paychecks:

1. Go to the Payroll menu and select Employees.
2. From the Employees page, select Run Payroll.
3. If you have more than one payroll schedule, select the schedule, then Continue.
4. Select the employees you'd like to pay and all other information.
5. Click on Preview payroll and choose Preview payroll details or Submit payroll.
6. Select Finish Payroll.

This article will show you how to create pay checks in online payroll. Creating a regularly scheduled paycheck or an unscheduled check for the employee, the Reimbursement field appears in the compensation section of the Enter Employee Pay Details page.

Refer to the following article for more information about printing these checks: Print paychecks in QuickBooks Online Payroll and Intuit Online Payroll.

Stay in touch if you need further assistance with your payroll. I’m always glad to help in any way I can. Take care and have a great rest of the day!

How would you do this in the desktop version, it does not have the selection for the non-taxable per diem in the drop down?

Let me help you record the non-taxable per diem in QuickBooks Desktop, elite_trans. 

The Nontaxable Per Diem payroll item is only available in QuickBooks Online version. However, we can create a non-taxable reimbursement payroll item in QuickBooks Desktop. Let's add a new payroll item in the software by following the steps below:

1. From Lists on the menu bar, select Payroll Item List.
2. Choose Payroll Item then tap New.
3. If using a U.S. version of QuickBooks only, select the Custom Setup option button. Then press Next.
4. Select the Addition item type. Then press Next.

Once done, follow the next steps in Set up the new item and Add the item to the employee's record section in this article: Create a non-taxable reimbursement payroll item. When creating a paycheck for your employee, let's make sure to add the payroll item under the Other Payroll items section. 

You can always browse this link here if you need help with adding and managing your tax forms. It'll route you to our general payroll topics with articles.

Feel free to update us after trying the steps, as I want to ensure this is resolved for you. Just reply to this thread and I'll get back to you. Have a wonderful day ahead. 

Rev. Proc. 2019-48 established the criteria for substantiating the costs for accommodation, food, and incidental expenses for travel away from home by utilizing per diem rates rather than real expenses. The federal per diem rates released yearly by the General Services Administration can be used by taxpayers who utilize per diem rates to verify travel expenditure amounts under Rev. Proc. 2019-48.

This amount is deemed substantiated  provided the employee or self-employed individual substantiates the elements of time, place, and business purpose of the travel for that day or partial day.

So according to the above as long as you are at or below the federal rate for per diem NO receipts or amounts of actual spending needed and does not have to be on report.

what is the tax tracking type for Per Diem?