Repay employee for expense

bspeed · ‎January 17, 2019

How do I properly add in a repayment to an employee for buying something for the company with their own money? And then correctly account for this on the chart of accounts/ P&L?

Thanks!

Anonymous · ‎January 17, 2019

Hey there, bspeed,

I can help you repay your employee's business-related expenses.

You can create a non-taxable reimbursement item then add assign the correct expense account for the repayment. Once done, you can now add the item to your employee's paycheck. Let me guide you through the process:

Step 1: Add a new payroll item.

Click the Lists menu.
Choose Payroll Item List.
Right-click anywhere and select New.
Choose Custom Setup and click Next.
Select the Addition item type, and select Next.
Enter the name of the item and click Next.
On the Expense account window, choose the correct account you'd like to reflect in your P&L report.
Click Next.
Set the Tax Tracking type to None so that the amounts do not report on tax forms, select Next.
Select Next.
Click Neither and click Next.
Choose to calculate on net pay, select Next.
(Optional) Enter a Default Rate, select Finish.

Step 2: Add the item to your employee'c paycheck.

Go to the Employees menu.
Choose Pay Employees.
Select Unscheduled Payroll.
Click the employee name and select Open Paycheck Detail.
If you aren't processing the regular payroll, remove all the Earnings items.
Add the reimbursement item on the Other Payroll Items section. (Please see screenshot)
Click Save & Close.
Choose Continue.
Select Create Paychecks.

That should get things done for you, bspeed. Please check out this article to know more about adding a non-taxable reimbursement payroll item: Create a non-taxable reimbursement payroll item in QuickBooks Desktop Payroll

Please let me know if you have any questions. I'm always here to help you whenever you needed help. Have a good day!

View solution in original post

Pete_Mc · ‎January 17, 2019

I do it the same as any other purchase...

If you want to be able to run Reports on what you paid each of them, then set them up as a Vendor (even if they're already in as an Employee) and when you repay them (Cash or Check), use the correct Expense Account for whatever the purchase was for. For a reminder you can put something like "Reimbursement: [Item(s)]" in the Memo field. (Notes like that help the Accountant too when they see the same name it two places.)

If the amounts are small (your choice as to what is "small" in your business), just pay them Cash and enter the Store/Vendor and Expense Account as if you went out and bought it. If the "Business" is buying something, it just needs the Vendor, Amount and Expense Acct be tracked properly. It doesn't matter who's hands actually carried the cash to the store.

Only caveat if they're in as a Vendor and Employee, don't mix them up.

Anonymous · ‎January 17, 2019

Hey there, bspeed,

I can help you repay your employee's business-related expenses.

You can create a non-taxable reimbursement item then add assign the correct expense account for the repayment. Once done, you can now add the item to your employee's paycheck. Let me guide you through the process:

Step 1: Add a new payroll item.

Click the Lists menu.
Choose Payroll Item List.
Right-click anywhere and select New.
Choose Custom Setup and click Next.
Select the Addition item type, and select Next.
Enter the name of the item and click Next.
On the Expense account window, choose the correct account you'd like to reflect in your P&L report.
Click Next.
Set the Tax Tracking type to None so that the amounts do not report on tax forms, select Next.
Select Next.
Click Neither and click Next.
Choose to calculate on net pay, select Next.
(Optional) Enter a Default Rate, select Finish.

Step 2: Add the item to your employee'c paycheck.

Go to the Employees menu.
Choose Pay Employees.
Select Unscheduled Payroll.
Click the employee name and select Open Paycheck Detail.
If you aren't processing the regular payroll, remove all the Earnings items.
Add the reimbursement item on the Other Payroll Items section. (Please see screenshot)
Click Save & Close.
Choose Continue.
Select Create Paychecks.

That should get things done for you, bspeed. Please check out this article to know more about adding a non-taxable reimbursement payroll item: Create a non-taxable reimbursement payroll item in QuickBooks Desktop Payroll

Please let me know if you have any questions. I'm always here to help you whenever you needed help. Have a good day!

qbteachmt · ‎January 17, 2019

@Anonymous

Please learn from thins input; they want and need to track What it is. The concept of "reimbursement" is a Process; not the Accounting. If they need to track reimbursement of Office Supplies and Stamps, that is not just one Reimbursement. That's the problem with your Payroll answer.

You don't set up Employees also as vendors, @Pete_Mc At least, not in the US; that makes it look like they are running their own Business. We need the reimbursement to the Employee name as Payee to show as Employee name, since it has to fall under the terms of An Accountable Plan per the IRS.

@bspeed

Enter a Check Expense to the Employee Name as payee, and list everything here that you "bought" from them as reimbursement. I bring printer paper and stamps to the office, you enter the two split details in the check to repay me. Or, the "check expense" to show you paid me from Petty cash. Make sure to get their receipts.

In Desktop, the Employee Center, these are shown as Non-payroll Transactions.

tandy164 · ‎July 30, 2020

Hi: What do you mean by'We need the reimbursement to the Employee name as Payee to show as Employee name, since it has to fall under the terms of An Accountable Plan per the IRS.'

Do you mean I can include the employees reimbursement within their bi weekly paycheck? Or do you mean something else by Payee?

I was about to create an 'Other Name' list to reimbursment my employee.

So is the Payroll one right?

Thanks.

34406 · ‎January 25, 2021

This is how I use to do it in Desktop but we recently converted to Online. How do you see these non-payroll transitions in online? When I look for them under the employee, the only thing I can see is their paycheck. I'm having trouble finding them outside of that.

Thank you!

Charies_M · ‎January 25, 2021

Thanks for bringing up this concern to the Community, 34406.

When converting from QuickBooks Desktop (QBDT) to QuickBooks Online (QBO), most of your payroll data doesn't transfer to QBO. Paychecks created from QBDT will be converted as regular checks. There will be a lump sum import of the current year's paycheck information and may need to enter a prior payroll for the past year-to-date payroll info for each employee.

With this, you'll need help from our QuickBooks Care Team. They can open your account and help add the historical paychecks for you. Here's how:

Go to Help at the top menu and select QuickBooks Desktop Help.
In the Have a Question? window, enter a topic.
Click Contact us.
Hit the Stat Messaging button.

Please take note our operating hours for chat support depends on the version of QuickBooks that you're using. Please see this article for more details: Support hours and types.

Learn more about what can and cannot be imported when switching from QuickBooks Desktop to QuickBooks Online: What to expect when you switch from QuickBooks Desktop to QuickBooks Online.

Since you're new to the Online Payroll version, let me share this Getting Started Guide to easily navigate the feature: Get Started With Payroll.

Get back to me if you need further help while working with W2's or anything about QuickBooks. Have a nice day.

mod912 · ‎June 14, 2022

Can this reimbursement be attached to a specific customer job? Currently Per Diem paid this way is being prorated across all jobs the employee worked on during the pay period. This is incorrect. Said employee traveled to the Smith job. He is paid a Per Diem (as a Cost of Goods) for each day at the job site. This job cost needs to appear in a Job Costs report for the Smith job only even though the employee worked on several other customers during the pay period. I am using Premier Contractor Edition. This should not be an unusual situation for this industry. Help would be greatly appreciated.

Charies_M · ‎June 14, 2022

Thanks for bringing this to the Community, .

In QuickBooks Desktop (QBDT) attaching a job is not possible unless you use the billable hours.

While this feature is unavailable, please know that we'll take this question as a suggestion. In the meantime, you are welcome to share your ideas about this option with our developers by following the steps below.

Open your QuickBooks Desktop company file.
Go to the Help menu, then select Send Feedback Online and choose Product Suggestion.
Enter your feedback and click Submit.

You might also want to visit our feedback forum to check the recent updates made in QuickBooks.

Also, I want you to get in the loop about the latest news and product developments in QuickBooks. That said, I encourage you to visit our Firm of the future site. To narrow down your search, you can go to the Product & Industry News tab.

If I can be of help while working in QuickBooks, please let me know. I'll be here to help. Have a good one!

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Repay employee for expense