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:
Click the Payroll menu, then select the Employees tab.
Choose one of your employees.
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.
Select the Reimbursement checkbox.
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.