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January 13, 2022
Question

Can you pay non taxable reimbursable in payroll without a gross payroll value?

  • January 13, 2022
  • 1 reply
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1 reply

January 13, 2022

Hello there, @kimberlyper. I'm here to help you with your concern about the non-taxable reimbursement in QuickBooks Online Payroll.

 

You can create a pay type that is non-taxable. Follow these steps to proceed:

 

  1. Click the Payroll menu, then select the Employees tab. 
  2. Choose one of your employees.
  3. 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.
  4. Select the Reimbursement checkbox.
  5. 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.

 

You can now create paychecks using the newly created Reimbursement pay type including the Reimbursement amount. 

 

I also recommend reaching out to a tax expert for additional guidance on how to do this. This is to ensure you have accurate employee reimbursement records in your books.

 

For future reference, I'll be adding this article that offers more details on paying your employees in different ways: Supported pay types and deductions explained.

 

I'm just a few clicks away if you have any additional questions about non-taxable reimbursements. Have a great day!