This article will help you to create a non-taxable reimbursement payroll item that can be created in QuickBooks Desktop payroll. You must not use the methods provided in this article if you want these payments to appear on vendor/supplier reports and also if you are paying an employee who is a subcontractor. Instead of it, you can set up the employee as a vendor/supplier and then use a Bill and Pay Bills.
Add A New Payroll Item
Initially, you need to add a new payroll item. To do so, follow the below steps:
- Go to the List menu and click on the Payroll Item List
- Click on the Payroll Item
- Select New
- If you have the US version of QuickBooks then you need to select the Customer Setup option
- Click on Next
- Click on Addition item and then Next
Set Up The New Item
Now, set up the new item by the following steps:
- Choose an expense account for tracking the travel or mileage amounts. You can select an asset account if this is an advance to the employee.
- Tax Tracking type will be None so that the amounts do not appear on tax forms.
- Select Next.
- Select the Based on Quantity checkbox to pay the amounts per mile/kilometer.
- Click on Next.
- Select to calculate on net pay and then Next.
- Provide a Default Rate and then click on Finish.
Add The Item To The Employee’s Record
At last, add the item to the employee’s record.
- From the Employees menu, select Employee Center
- Double-tap on the employee’s name
- Navigate to the Payroll Info tab
- You need to add the items in Additions, Deductions, and Company Contributions.
While creating the paychecks the additional items will be visible in the Other Payroll Items section of the Preview Paycheck window. If the item is quantity based then make sure that you’ve entered the correct under the Quantity column.
Technical Support For QuickBooks Payroll
The provided guide will help you in creating a non-taxable reimbursement payroll item can be created in QuickBooks Desktop payroll. If you face any kind of issue during the process then you may need to update your QuickBooks and payroll to the latest release. If the issue is still around then you can get in touch with us at QuickBooks Payroll Technical Support Number +1800-324-6955 to get instant support for your QuickBooks Payroll application.