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RangelDW
Level 1

Tuition reimbursement

I'm wanting to set up tuition reimbursement for one of my employees but I have no idea how to go about this. Under pay, I've checked "reimbursement" and am able to add an amount to their paycheck with no taxes. I just want to make sure I do this properly to not affect us or them later on. From what I read I'm able to provide up to $5,250 toward their tuition tax-free and record it as a business expense. I've searched high and low and can't seem to find anyone else with similar experience or how to set up. My business is a C-corp.

1 Comment 1
Maybelle_S
QuickBooks Team

Tuition reimbursement

Glad to have you here in the Community, @RangelDW.

 

I can help you set up a tuition reimbursement in QuickBooks Online (QBO).

 

Here's how:

  1. Go to the +New button.
  2. Under the Vendor, choose either Expense or Check.
  3. Select the Payee drop-down arrow and find the name of your employee.
  4. Click the Category drop-down arrow, and then select a liability account.
  5. Enter the Amount.
  6. Choose your customer from the drop-down arrow.
  7. Click Save and close once done.

I've also added this article about creating a reimbursement pay type in QBO.

 

You can leave a comment below if you have other concerns. It's my pleasure to be of great help. Take care!

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