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How do I enter a reimbursement to an employee and record the expense to the correct category? Example, gas, tools, travel, etc.

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Re: How do I enter a reimbursement to an employee and record the expense to the correct category?...

Hello, Mellyb2225,


I can provide some information about reimbursing an employee.


To reimburse business related expenses that an employee has paid using their personal funds, you may either:

  • Add Reimbursement pay type for an employee.
  • Pay your employee now.
  • Record the expense and pay your employee later.

To set up a reimbursement pay type, here's how:

  1. Click Workers in the left navigation tab.
  2. Go to Employees tab.
  3. Choose the employee from the list to add a reimbursement.
  4. Go to Employment details, and click the pencil icon beside of Pay.
  5. In section #4, choose Add additional pay types.
  6. Put a check mark in the box for Reimbursement.
  7. Click Done.

Upon running payroll, there will now be a Reimbursement column in which you can enter the amount.


To pay your employee now, you can create an Expense or Check transaction. Then, create an expense account appropriate for the purchase made by the employee.


To record the expense for future payments, you can create a journal entry, then pay the employee later after the end of the month or to coincide with the end of a pay period.


To have a better view about the process, here are helpful articles that you can read:

With this information you'll be able to reimburse your employee when they have to pay for gas, tools, travel, and other business related expenses.


In case you need tips and related articles in the future about the "How Do I" steps in QuickBooks Online, visit our QuickBooks Community help website for reference: QBO Self-help.


If you have follow up questions in entering reimbursement, please feel free to reach out to me. Have a great day!