Often, we have employees on jobsites who may need certain material immediately to complete the job. They go and purchase the material themselves and we reimburse them on their next paycheck.
How do I go about properly recording these expenses by employees in QuickBooks, and reimbursing the employees on their next paycheck? It would go like this:
We use QuickBooks Online with Payroll. Sometimes there are multiple employees that need to be reimbursed, so I'd like to be able to pull a report every week by name to see how much to reimburse to who.
Thanks for joining the Community space, KN09.
I'll make sure that you can record your employees' reimbursement in QuickBooks Online(QBO).
There are two ways to do this. First, you can create a cheque or journal entry if you're using a third-party payroll.
Here's how to pay your employee now:
Here's how if you want to pay your employee later:
After recording your Journal Entry, you can pay them using a cheque or expense.
Also, you can run transaction detail reports to know how much you still owe them.
On the other hand, you can add the Reimbursement pay type if you want to include it on their paychecks.
Once done, you can create paychecks using the newly created Reimbursement pay type. The Reimbursement field will appear in the compensation section of the Enter Employee Pay Details page.
For your reference, you can check these guides here:
In addition, I encourage seeking help from your accountant. They may add suggestions based on what's more suitable for your books and the business itself.
Reply to this post if you have further questions about reimbursement. The Community and I will always here to back you up. Stay safe!