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QuickBooksHelp
Intuit

Reimburse an employee

What's a reimbursement?

Reimbursements are nontaxable payments to an employee used to repay business-related expenses that the employee has paid out-of-pocket.

Don't include expenses that have tax implications, such as moving expenses. Typically this includes expenses incurred for limited or regular business travel. (Industries that require extensive travel typically use nontaxable per diem payments instead of expense reimbursements.)

Because these payments aren't taxable, they don't appear on payroll tax or other tax reports, or on W-2 forms. They're also not included in the wage base used to calculate percentage-driven deductions such as 401(k) amounts. For guidelines on reimbursements, check the Employee business expense reimbursements section of IRS Publication 15, Circular E — Employer's Tax Guide.

You can keep the default name we provide for the Reimbursement pay type, or give it a unique name. In addition to being available for this employee, any custom pay type will be available when you add or edit your other employees.

Intuit Online Payroll Full Service

  1. Add the Reimbursement pay type
    1. Click the Employees tab.
    2. Select the employee name.
    3. In the Pay section, click Edit.
    4. Under Additional pay, select the Reimbursement checkbox.
      Note: If the Reimbursement pay type is displayed, click Show additional pay types. If it's not included in the pay type list, contact us.
    5. Click Edit and enter a recurring amount or give the pay type a unique name (optional).
    6. Click Save.

    When you create a regularly scheduled paycheck or an unscheduled check for the employee, the Reimbursement field appears in the compensation section of the Enter Employee Pay Details page.

  2. Create paychecks using the newly created Reimbursement pay type including the Reimbursement amount

The check includes the reimbursement amount in it's total.

QuickBooks Online Payroll (all other versions) QuickBooks Online Payroll Full Service, QuickBooks Online Payroll Core, QuickBooks Online Payroll Premium, or QuickBooks Online Payroll Elite.

  1. Add the Reimbursement pay type
    1. In the left navigation bar, click Employees.
    2. Under How much do you pay this employee? click Add additional pay types if you haven't selected any other pay types, or click the pencil icon if you have.
    3. Select the Reimbursement checkbox.
    4. Click Done.

    When you create a regularly scheduled paycheck or an unscheduled check for the employee, the Reimbursement field appears in the compensation section of the Enter Employee Pay Details page.

  2. Create paychecks using the newly created Reimbursement pay type including the Reimbursement amount

The check includes the reimbursement amount in it's total.

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