Thank you for joining this conversation and bringing up the ongoing issue with reimbursement classifications in QuickBooks Online. It's great to see Community members actively seeking solutions and sharing their experiences. I appreciate you checking on the status of this issue, and I'll do my best to provide you with the most current information and practical steps to help manage reimbursements effectively.
To begin, when you process reimbursements through payroll, they are included in the gross pay for reporting purposes. However, please note that these reimbursement amounts should not be treated as taxable income. They are generally non-taxable and won't affect the employee's tax obligations.
As a workaround, if you would rather not include the reimbursement in the gross income, you can create a separate check. This approach ensures the reimbursement isn't mistakenly reported as part of the employee's taxable wages.
For additional guidance on managing payroll taxes and forms in QBO, you may find this article helpful: Pay and file payroll taxes and forms in Online Payroll. It provides step-by-step instructions for navigating these processes within the platform.
I hope this information helps clarify the current situation and provides some actionable steps. Remember, we're here to support you in managing your business finances effectively. If you have any further questions or need additional clarification, please don't hesitate to ask. We're always here to help.
