Mileage reimbursement in QBO payroll

Is there a way to make the mileage non-taxable?

Hi there, marcimiller.

Glad to see you here in the QuickBooks Community. Let me share a few things about mileage.

Mileage is something that needs to be reimbursed. Reimbursements are nontaxable payments to an employee as a repayment for business-related expenses.

Here's how to set up a reimbursement pay type for an employee:

1. Click the Workers tab from the left pane and select Employees.

2. Choose an employee name.

3. Under How much do you pay, click the pencil icon next to Add additional pay types.

4. Click Even more ways to pay drop-down and place a check mark next to Reimbursement. You may enter a recurring amount in the box, or add it when you run payroll.

5. Select Done.

You may refer to this link for additional information: https://community.intuit.com/articles/1436628.

Please let me know if you need anything else. I'll be right here in the Community to help. Wishing you the best!

When you do this reimbursement for mileage in payroll, it gets added to salary on the T4 slips for income tax which is not right.  How can you stop this from happening.

Hello there, @Ceilidh.

You can check the accounting preference to ensure it is posted in the correct accounts for exporting purposes. I'd be happy to show you way on how to check the account for the reimbursements:

1. Go to the Settings or Gear icon and select Payroll Settings.
2. Navigate to the Accounting section and click the Edit or Pencil icon beside it.
3. Locate the payroll item for the mileage reimbursement and click the Pencil icon in that section.
4. Check if the payroll type is assigned to the correct account. Make changes if it's not correct.
5. Select Continue and Done. I've added some screenshots for your additional reference:

To know more about the reimbursement pay type, you can check out this article: Create a reimbursement pay type in Online Payroll.

You may consider checking this reference page about tracking your payroll transactions in QuickBooks: Run payroll reports. This contains more payroll reports and its description.

You're always welcome to tag my name in the comment section if you have other questions or concerns. Take care!

I can't see a 'workers' tab.  Where do I find it?

Thanks for joining this thread, nicepipes.

In June 2020, the Workers tab was renamed to Payroll. You can find it in your same left navigation bar under this title.

It was changed to help small businesses like yours better navigate their payroll processes, including workers' comp, benefits, HR, and more.

I've also included a detailed resource about reimbursing employees which may come in handy moving forward: Reimburse your employee

Please don't hesitate to send a reply if there's any additional questions. Have an awesome Friday!

What if the reimbursement account never shows up in the payroll settings so I can not assign it an account in the chart of accounts.  I have paycheck stubs that look like I am entering mileage but it never gets added to the net pay.  How do I fix this as they folks have not been actually getting reimbursed?

Hi there, clmusbooks.

I'm here to share some information about reimbursement accounts in QuickBooks Online (QBO).

The reimbursement account will show in the Chart of Accounts (COA). Let's check and ensure if it's added in QBO.

1. Sign in to your QBO account.
2. Choose Accounting.
3. Click Chart of Accounts.
4. Search for Reimbursement account.

Once verified, if it's still not showing in the settings, I recommend trying some troubleshooting to see if this is browser-related.

To start off, access the QuickBooks website using a private browser or an incognito window. This is a feature on the web which allows you to browse without storing any data history.

Here’s how:

• For Internet Explorer or Firefox, press Ctrl + Shift + P.
• For Chrome, press Ctrl + Shift + N.
• For Safari, hold down Command + Shift + N.
   

If it works, that means it's a browser-related issue. Go back to your main browser to fix it by clearing its cache and temporary file. 

If private browsing doesn't work, I'd recommend using other supported browsers. They'll provide the best and most secure experience with QuickBooks. 

You can read through these articles to help you learn more about managing your transactions in QuickBooks:

• How to set up your expense settings
• Track What You've Spent: Expense Reports
• What is the difference between bills, checks, and expenses?

I'm always here if you need help in recording the reimbursement. Have a good one.