Hello All, When doing a reimbursement and the system did not tax (which it was what I needed) will is show as a income on his w2? Which I do not want him to pay at EOY

I can address your question regarding the reimbursement process and its implications for tax reporting, Katharina.

When employees are reimbursed for business expenses they have incurred themselves, these payments are classified as non-taxable. Consequently, they will not appear on payroll tax forms or be included as income on W-2s. This ensures that neither the employer nor the employees encounter additional tax implications at the end of the year.

For detailed guidelines on reimbursements, please refer to the section on Employee Business Expense Reimbursements within IRS Publication 15, commonly known as Circular E — Employer's Tax Guide.

Ready to submit your W-2 forms to federal and state agencies using QuickBooks Online Payroll? This article provides all the guidelines you need to make the process as smooth as possible: File your W-2 and W-3 forms.

If you identify any issues with your employee's W-2 forms, don’t miss this helpful article outlining the necessary steps: Fix an incorrect W-2 and W-3.

Ensuring your W-2s are done right is very important, and we're here to help you every step of the way. Have more questions? Just reach out to us, and our team is ready to assist.