Per Diem entry in quickbooks online

Welcome to the QuickBooks Community, @noworrez.

I'll show you the steps on how to enter your daily allowance in QuickBooks Online (QBO) Payroll. 

Since Per diem payments aren’t subject to income tax, they aren’t included in an employee’s wages. However, your payments will be taxable if the following apply to you; Per diem is the allowance, or reimbursement, given to employees for business travel and lodging, meals, and incidental expenses.

Having said, you can enter its amount in the Nontaxable Per Diem Recurring amount section. Although, this field doesn't have the option to enter the 80% deduction of the daily rate. If you wish to enter the exact amount, you can input the remaining 20% of $66 instead. Here's how:

1. Go to the Payroll menu and select the name of the employee.
2. Under the Employee details section, click the Pay pencil icon.
3. Look for the How much do you pay [name of the employee]? section and select the pencil to add your entry.
4. Locate the Nontaxable Per Diem Recurring amount, then enter 20% of the $66 allowance.
5. Click Done when you're finished.

I've also added a link about the add or change pay types. This way, you can check how each of them impacts your federal taxes and forms.

I'm just a reply away if you have other questions with the QuickBooks Online Payroll. Just add the details of your concerns in this thread and I'll help you out.

Thank you for the quick response.  I should have mentioned that I have simple start because I do not have employees and no use for payroll.  As a single member LLC, all income is passed through to my personal return as a sole proprietor.  It appears to me the only way I will be able to account for it would be at tax time by entering the amount under meals: GSA Per Diem Allowance.

Thanks again,

Kelly

Hi, was this question answered?  I have the same question...how best to enter meal per diem for single member LLC.  I entered GSA per diem as a meal expense in QB online for tax purposes only.  First question, is this correct method or what is the best practice for this situation?  If yes, second question, using the expense form, what payment account and payment method should be used since this is only for tax purposes?  Thank you