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Level 1

Reimbursement to employees via direct deposit - how to classify

Hi all-


Question:  employee needs reimbursed for out of pocket training costs.  I pay using direct deposit and added the reimbursement as a miscellaneous addition.  I need to classify the addition as an expense (training expense) but can't figure out how to do this.   Journal entry?


Thank you

2 Comments 2
Level 7

Reimbursement to employees via direct deposit - how to classify

You need to create a specific payroll addition item and point it to a training expense account.  If you use a miscellaneous payroll addition item, you need to look at the expense account that it is pointed to and move the amounts to specific expense accounts via a general journal entry.

Not applicable

Reimbursement to employees via direct deposit - how to classify

It's lovely to see you here today, R-keim,


I can add a bit more about choosing the expense account for your reimbursements item.


QBsguru's answer is correct. You can add a reimbursement/addition item before you can add it to a specific expense account. You may refer to this article to set up a reimbursement pay type: 

Create a reimbursement pay type in Online Payroll


Once done, you can now set the reimbursement's wage expense account in the Preferences section of the Payroll Settings. Let me guide you how to do that:

  1. Click the Gear icon.
  2. Select Payroll Settings.
  3. Under Preferences, choose Accounting.
  4. Go to the Wage Expense Accounts section.
  5. Mark the I use different accounts for different wages radio button.
  6. Scroll down and look for Reimbursement.
  7. Choose the correct wage expense account for the item.
  8. Click OK.

That should point you in the right direction, R-keim.


Please feel free to fill me in if you have any more questions with QuickBooks Online Payroll. I'll keep an eye on this post for your response. Have a great day!


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