How can i reimburse an employee through payroll *WHILE* tracking the expense to a job or at least to an expense account?
You'll want to add payroll items to track and account for reimbursements for your employee's expenses.
Select the option to Calculate on Net Pay and click Next.
Enter the default rate and click Next.
After that, add the item to the employee's record.
If you want more information about payroll, please click this link for your reference: Employees And Payroll Taxes.
Let us know if you need anything else. We're always here to help.
I saw that answer prior to asking the question. I want the transaction to reflect the expense against a customer job as an item, or at the least an expense. I track job costs by item, hence the preference. At the very least I want to be able to run a report on a job and see ALL expenses.
Good afternoon, @Jfkastq.
Thank you for following up on this thread.
You can create another job for specific expenses and then run a job costing report for that job.
Here's how to access various job reports:
Once you've created another job for those expenses, you'll be able to track your expenses on one specific report.
That should do it. If you have any more questions or concerns, please don't hesitate to comment below. Happy Tuesday!
Thank you for getting back here at QuickBooks Community.
You can add your reimbursement under the earnings column in the paycheck, so you can assign it to a customer job and track the expense in your reports. Let me guide you with the steps.
1. From the Lists on the menu bar, select Payroll Item List.
2. Select the Payroll Item button, then select New.
3. Select Custom Setup and click on Next.
4.Click the Wage item type and select Next.
5. Choose Commission from the item type list and click Next.
6. Enter the name of the item.
7.Select an Expense account to track the money you owe the employee for reimbursement.
8. Hit Finish.
After that, refer to the steps below on how you can enter the payroll item on the paycheck.
1. Select Employees menu, select Employee Center.
2. Click on Start Unscheduled Payroll or Start Scheduled Payroll.
3. Put a check mark beside the employee's name and Click Open Payment Detail.
4. In the Earnings column, add the expense,add the expense item you created, the rate, and the customer job.
7. Select Save and Close.
8. Continue to create the paycheck.
You can run the Unbilled Costs by Job Report to track the reimbursement. From here, you can also customize it and export the report.
If you have additional queries, don't hesitate to leave a comment below. Have a great day!
You're right, Droybal.
It's taxable once it's set up as an earning item. The answer provided is just an option.
As always, we suggest with conferring with your accountant on the best way to reimburse the employee.
While we can't provide an accounting advice, we're here to answer QuickBooks technical questions.
I need help with this question as well. What is a WORKABLE solution to this issue? I need to be able to charge per diem and mileage to jobs but I also want to run that through payroll without it being taxable. How can you do this? I know that if there is labor associated with the reimbursement, the reimbursement will show up on the job cost, but not if it's only a reimbursement and no hours, even with a job selected on a labor line. Please help.
I'm here to take care of your query about employee reimbursement.
I suggest following what my colleague @Rubielyn_J mentioned above. If you wish to make it non-taxable, you'll have to consult your accountant or bookkeeper on how you can accomplish this within QuickBooks Desktop (QBDT).
If you have other concerns, place them in the comments below. I'll be sure to get back to you.
Thanks Ryan_M, but you really didn't answer my question. I happen to be a Financial Controller/Certified Public Accountant and so I don't need to know which accounts to book the charge to or the fundamentals of accounting for it properly on my financials, but rather HOW to get the QuickBooks software to allocate the expense toward a customer job automatically through payroll. I'm assuming that since you are referring me to an 'Accountant' for answers, that there is really no other help for this except a manual entry...?
Hi there, @BKCks.
Because mileage and pier diem are added in the Other Payroll Items section of the paychecks, we're unable to directly associate them to the job without any entries in the Earnings section.
However, you can follow these steps on how to add pier diem and mileage as non-taxable items in QuickBooks Desktop (QBDT). There's also an option to track these payroll items per job while setting them up.
Please take note that marking Track Expenses By Job won't add a Customer: Job column to the payroll items listed under Other Payroll Items on a paycheck. Instead, in reports, these items are divided based on the division of the earnings items on the paycheck.
You can check out this article for information: How to set up job costing and item tracking so you can track payroll expenses by job.
Don't hesitate to tag my name in the comment section below if you have other concerns or questions. I'm always ready to help.
Yes, you can perform the steps above on your QuickBooks version, @Bo0923.
To accomplish this, you'll need to turn on the job tracking feature on the Preferences page. Let me guide you how:
Once done, perform the steps again shared by my peer above. Please see screenshot below for visual reference:
To view all the payroll items you've created, you can pull up the Payroll Item Listing report. Here's how:
Feel free to leave a comment if you have more questions. Have a nice day.
Just to be clear, the approach you recommend above does post the reimbursement (Addition) to jobs...but it splits the reimbursement across ALL JOBS where the employee earned WAGES ... so if you are attempting to classify a given reimbursement, for say $150, to a single job, the ONLY way to do that using the above method is for that paycheck to ONLY HAVE WAGES FOR THAT ONE JOB. But if your employee worked on multiple jobs, then guess what? That reimbursement will be split and posted to all of the jobs! Not really a solution. And PS, checking the box to track these by job creates a crazy amount of clutter in the books. It would be great in Intuit came up with a way to actually allow users allocate additions to specific jobs when needed.