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owen6
Level 1

What is the correct way to pay a tuition reimbursement?

Employee was offered a tuition reimbursement as part of payroll package, up to $3500/year. What is the correct way to enter this reimbursement into payroll when due?
1 Comment 1
MonicaM3
Moderator

What is the correct way to pay a tuition reimbursement?

Hi there @owen6.

 

Welcome to the Community! Tuition reimbursement is such a great benefit. I can definitely help you get it set up.

 

Essentially we will need to add the reimbursement account to your payroll items and then add that to the employee. The exact steps vary a little based on which payroll subscription you have.

 

If you have QuickBooks Online Payroll:

  1. Select Workers from the left menu, then select Employees.
  2. Select the employee's name.
  3. Select edit (pencil) icon beside Pay.
  4. Under How much do you pay, select Add additional pay types.
  5. Select Even more ways to pay... drop-down, then select Reimbursement.
    • You may enter a recurring amount in the box, or add it when you run payroll.
    • You can also rename this pay type by selecting the pencil icon beside Reimbursement.
    • If you want to set up multiple reimbursement pay types, just select Add Reimbursement type, then enter a reimbursement name and amount.
  6. Select Done.

 

For other payroll, subscriptions check out how to create a reimbursement pay type.

 

Once a reimbursement type is added, you can also assign this to another employee. The amounts paid as reimbursements are not subject to any taxes and are not included on any forms.

 

To record or pay back your employees' business-related expenses in QuickBooks Online, here is the process to reimburse an employee with a regular check.

 

I'm happy to help with any additional questions about reimbursements or anything else. Feel free to ask anytime.

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