Payroll and tuition reimbursement

Hi there, @dorilou28. 

Thanks for coming to the Community for your concern. Yes, you can post the payment for the tuition reimbursement to show on the P&L report. 

To do this, you'll need to create a clearing account, then create a journal entry. The steps are similar to setting up a bank account in your chart of accounts but without an opening balance. Here's how: 

1. Go to your Chart of Accounts and select New.
2. Choose Bank as your Account Type.
3. You can use any Detail Type, then you can enter either a Clearing Account, Barter Account or Wash Account in the Name field.
4. Do NOT enter an opening balance.
5. Click Save & Close.

Create the appropriate journal entry:

1. Click the +New menu, then choose Journal Entry.
2. In the Journal Entry window, change the date if necessary.
3. In the Account Field, choose Creditors from the drop-down list.
4. Enter the amount in the Debit field.
5. Tab to the name field and select the Supplier from the drop-down list.
6. In the next row, choose the off-setting or the clearing account in the Account field.
7. The amount in the Credit field should be equal to the amount in the Debit field, then click Save & Close.

Once done, remove the tuition in the P&L 2021, then create another journal entry for tuition in 2020. 

To make sure that your books are accurate, it's best to consult with your accountant.

Let me know if you have additional concerns. We're always delighted to assist. 

Hi Katherine,

Thank you for responding. The tuition reimbursement was paid during payroll and is on his direct deposit. How can I remove it from his direct deposit payroll stub showing in QuickBooks in 2021? I called customer support and they told me it's not even possible to do this so they were no help at all. Thanks.

Hi there, dorilou28.

Thanks for following up with those details. I'd be glad to provide some additional info about editing employee direct deposit in QuickBooks Online.

Removing the tuition reimbursement can be done within the employee profile, in just a few steps. Here's how:

1. Hover over the Payroll tab in the let navigation menu, then select Employees.

2. Locate the employee who is receiving the tuition reimbursement, and click to open their profile.

3. Select the small pencil icon beside of Pay.

4. Scroll to section 4 and click the pencil icon beside of the additional pay types listed.

5. Uncheck the Reimbursement box.

6. Click Done when you're finished.

After completing these steps, the reimbursement pay type will no longer show as a method to pay your employee. I recommend checking out the following article for even more info on adding or changing pay types in Online Payroll.

Please don't hesitate to reach back out if you have any other questions. I'd be happy to lend a hand.

Hi. Here is the scenario,

I paid an employee on Jan 8th via direct deposit. This DD contained $1750 which was for a tuition reimbursement for the year 2020.  I did a journal entry and dated it for Dec 31 to have it show up on the P&L for 2020 which is where we want it to show, however, it is also showing up on the P&L for 2021.

the question is: how do I not have it show up twice on the P&L for both years? How do I remove it from the 2021 P&L?  We do not want it to show up on the 2021 P&L?   thanks.

Thanks for following up, dorilou28.

My mistake, I misunderstood before, but I see now. 

The reimbursement payment is showing on the 2021 Profit and Loss Report because of the pay date. The check would need to be voided, then entered again, making sure the pay date recorded falls in 2020. Here's how to void the check:

1. Open the 2021 Profit & Loss Report.

2. Click the amount listed for Wages, under the Payroll Expenses section.

3. Select the check in question to open it.

4. Choose Void at the bottom, check the box, and then click Void Paycheck to continue.

Once you've voided the check, you'll need to go back in a create a paper check manually for your employee. The following linked article provides additional info about creating pay checks in Online Payroll.

It's always a good idea to double check these kinds of actions with your accountant. Let me know if there's anything else I can lend a hand with. Take care!