Per Diem

Recording per diem in QuickBooks Online is an easy process, seniorscomplete.

To record the per diem, let’s create a payroll item and then add the amount to the paycheck. I'll guide you how.

1. Go to the Payroll and then select Employees.
2. Select the name of the employee, then click to open.
3. Scroll down, then choose + Add additional pay types (like overtime and sick pay).
4. Click Additional pay types.
5. From there, select the correct pay types for the per diem. You can choose Nontaxable Per Diem.
6. Click on Save, then Done.

For your visual reference, I've attached some screenshots below.

The pay type field will show on the Enter Employee Pay Details page. From there, enter the correct amount.

To learn more about which pay type to choose, please see this article: Add or change pay types. If you're unsure, I'd suggest consulting a tax adviser to guide you with the process.

Additionally, you can run payroll reports to view useful information about your business and employees. 

In case you have additional questions setting up per diem, please let us know by getting back to this thread. We're always here to help. Take care!

Hi seniorscomplete,

Hope you’re doing great. I wanted to see how everything about recording per diem in QuickBooks. Was it successful? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at anytime.

Looking forward to your reply. Have a pleasant day ahead!

How do you enter/accept  receipts/expenses if they are covered by a per diem?  Meals/Travel? This is for a contractor who receives a per diem from his client. Usually I enter the receipts as reimbursable expenses and   make them "billable" and link to the invoice. 

Hello there, @Scillasmith. 

Welcome to the Online Community. I can share some information about adding this per diem in QuickBooks Online (QBO). 

When using a timesheet, you can only track the service worked on a (customer/job). To record the per diem, let’s create a payroll item and then add the amount to the paycheck.

1. Tap the Workers menu to choose the Employees option.
2. On the Employees page, select the worker you're working on to open its profile.
3. Click the Pencil icon for Pay under Employee details.
4. Click the Add additional pay types link under the How much do you pay this employee section.
5. Then, mark the Reimbursement and then type in the amount in the Recurring amount field (optional).
6. Press Done.

7. The Reimbursement field will show on the Enter Employee Pay Details page. From there, type in the correct amount.

For more information, check out the Reimburse an employee article. It provides detailed information about recording non-taxable payments as well as steps to record them in QBO.

Refer to the following article for more information about printing these checks: Print paychecks in QuickBooks Online Payroll and Intuit Online Payroll.

Stay in touch if you need further assistance with your payroll. I’m always glad to help in any way I can. Take care and have a great rest of the day!

Hi Thank you for your reply.  This is for a contractor not an employee.  I am the bookkeeper for a guy who does work involving travel for his client.  He gets a per diem. I enter the per diem in the invoice along with the daily rate. When the receipts come in do those go to owners draw?

Thanks for coming back, Scillasmith.

We can create a check and affect the expense account to record the per diem for contractors. Let's make sure we set up your printing preferences. I'd suggest consulting your accountant on what account you'll need to apply if you are unsure about this one. Once done, here's how to pay a contractor with a paper check: 

1. Go to the Payroll menu and select the Contractors tab.
2. Tap the dropdown next to the contractor's name and then Write check.
3. Choose the expense account you use to track paychecks from the Corresponding account in QuickBooks field. This is the expense account on your chart of accounts where QuickBooks records the expense. It's not the bank account the payment debits from.
4. Press Save and Close to send the check to your print queue. 

If you don't want to use a paper check, we can pay your contractors with direct deposit. On the other hand, the receipts will go to the owner draw if you set up and pay an owner's draw in QBO. An owner's draw account is an equity account used to track withdrawals of the company's assets to pay an owner. 

Feel free to visit our Expenses and vendors page for more insight about managing your contractor's transactions.

I want to make sure everything is taken care of for you, please let me know how it goes or if you have any other issues or concerns. Just leave a comment below and I'll get back to you. Take care always.

I do Im doing this for a 1099 worker and an unsure how to log it.

I appreciate you joining this thread, Milliethemillionaire.

I can help you record per diem for your 1099 worker in QuickBooks Online.

You can create a new Expense account for per diem if you don't already have one. Here's how:

1. Go to Settings and select Chart of accounts.
2. Click New.
3. Fill in the necessary details.
4. Tap Save once done.

Afterward, create a check transaction for the per diem payment to the 1099 worker using the Expense account you created.

1. Navigate the +New button and select Check.
2. Enter the payee's name and other information.
3. Ensure to select the Expense account under the Category details.
4. Click on Save and close.

I'm including this article to learn more about the process: Create and record checks in QuickBooks Online.

Furthermore, check out these helpful guides that will provide all the details you'll need about 1099s for future reference:

• Understand which contractors need 1099s
• Troubleshoot missing contractors or wrong amounts on 1099s
• Get answers to your 1099 questions

If you have any other questions or issues aside from recording per diem for 1099 worker, feel free to share them here. I'm available to help.

I am a contractor and charge my vendors per diem and mileage.

When receiving money from a vendor, how do I break out Per Diem and mileage from other income?  The vendor makes payment for all charges on the invoice that includes per-diem.  How do I show a portion of checks from vendors as per diem?  I understand how to write myself a per-diem check but I'm unsure on how to break the per-diem out from other income when receiving payment.

Hello there,

Let me provide information about recording your per diem and mileage without mixing it with your other income in QuickBooks Online (QBO).

First off, consider creating a service item for your per diem and mileage.

Here's how:

1. Go to the Gear icon and select Products and services.
2. Click New, then choose Service.
3. Enter a name such as Per Diem and Mileage.
4. Under the Category, select Service.
5. Under the Income account enter Per Diem, then click +Per Diem to add an income account specific to this item.
6. Once done, click Save and close.

When creating an invoice, you can now add a service item and specify the amount for that item. This will help to ensure that your per diem and mileage are not mixed up with your other income.

Moreover, I'm adding this article as your reference in running financial reports in QBO: Run reports in QuickBooks Online.

Return to this post if you have other concerns about recording your per diem and mileage in QuickBooks Online. The Community is always here to help.

My question is how to create Per Diem in Quickbooks Desktop.  When my employees travel out of town, I pay them $35 per day for a food allowance.  How do I create a Per Diem item so I can record these amounts added to their paycheck and what are the accounts I should choose when creating it?  I am not very familiar with this process so I will need step by step instructions, not just "choose the appropriate option," since I don't have the knowledge to know what the correct option should be.  

Thank you for joining this thread, Lizyetman. I'm here to assist you with setting up a Per Diem in QuickBooks Desktop (QBDT).

In QBDT, you can create a Per Diem item for your food allowance. Regarding the accounts you should choose, I suggest consulting your accountant. They can provide personalized recommendations on this.

Here's how:

1. Go to Lists and choose Payroll Item List.
2. Select the Payroll Item dropdown arrow, then select New.
3. Tick the Custom Setup (allows editing of all settings; recommended for expert users).
4. Click Next.
5. Select Addition (Employee Loan, Mileage Reimbursement), then click Next.
6. In the Enter name for addition, you can type Food Allowance, then select Next.
7. For the Expense, Tax tracking type, and Tax account, I suggest consulting with your accountant to choose the correct account.
8. In the Calculate based on quantity, tick the Neither and click Next.
9. In the Default rate and limit, you can type what rate and limit you prefer.

Additionally, you want to learn more about job costing in QBDT by visiting this article: Track job costs in QuickBooks Desktop.

If you have additional concerns regarding payroll in QuickBooks Desktop, please don't hesitate to post them in the Community space. Stay safe!