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Join nowFirst, I'm not using QuickBooks Payroll. Given that... How do I enter a reimbursement in to an Employee in QuickBooks Desktop?
We have an Employee that is being reimbursed for telephone expenses. In our current QuickBooks setup we have entered that Employee as an "Employee" in the Employee Center (even though we do not use the payroll feature) and also added them as a "Vendor" in the Vendor Center (with a different extension to denote the difference). Then we add a Bill to the Vendor version to record the amount due to the Employee. Last, when we pay them later, we enter a Bill Payment against that Bill.
How should this be done properly? It doesn't seem correct to have to enter an employee as both an "Employee" and "Vendor" to do this. Also, not sure doing a reimbursement item and then paying it with a payroll check seems right because we don't use QuickBooks payroll and don't cut payroll checks to employees in QB.
Hello @AWBEL,
Thank you for posting here in the Community. I'm here to provide some clarification about running payroll and entering a reimbursement in QuickBooks Desktop.
Entering an employee as a vendor isn't advisable. Let me share some details about how you can access the payroll feature without subscribing to the service.
Users who choose not to subscribe to any of the QuickBooks Desktop Payroll Services can set up manual payroll. This feature allows you to manually calculate payroll tax figures and enter them for each paycheck.
Please note that the system won't calculate any taxes or provide payroll tax forms. If you haven't enabled it yet, please start with making sure your computer is not connected to the internet.
Once done, you can proceed with the following steps to set up your company preferences for payroll:
After following the steps above, please proceed with enabling the manual payroll. Here's how:
If you're able to activate the manual payroll, you can now enter the reimbursement. First, create a new payroll item.
Please follow these steps:
Next, to include the item to the employee's record, please follow the steps in this link (scroll down to Add the item to the employee's record): Create a non-taxable reimbursement payroll item.
If the reimbursement is part of the payroll, you can create the paycheck. Click the Employees tab at the top, hover your cursor to Pay Employees, then select Scheduled Payroll, Unscheduled Payroll, or Termination Check.
In case you've failed to activate manual payroll, I recommend contacting our Payroll Support Team. They'll be able to help you further with the process.
Let me walk you through how:
I've also attached an article you can use to enter a paycheck in QuickBooks: How do I create a paycheck for an employee?.
Drop me a comment below if you have any other questions about running payroll. I'll be happy to help you some more.
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