How can you tell if a reimbursement is being excluded from taxable income in QBO?

Thanks for reaching out to us, Phil C1.

The amount received in the form of reimbursements is non-taxable and isn't included in taxable income. These payments won't appear on any of your payroll tax forms.

You can create a reimbursement item in QuickBooks Online if you wish to reimburse your employee for a business expense they paid out of their pocket. I'll show you how.

1. Go to Payroll, then Employees.
2. Select your employee.
3. From Pay types, click Start or Edit.
4. Scroll to the Additional pay types section and choose Reimbursement.
5. You can rename this pay type by clicking the Edit icon next to the Reimbursement.
6. You can also enter an amount if this is a recurring payment.
7. Once done, hit Save.

For your reference, you can read this article for more details: Reimburse your employee.

In addition, I've included this resource for future reference to learn about setting up deductions and contributions in QuickBooks Online: Set up voluntary deductions in Online Payroll.

If you have any additional inquiries about reimbursement, please let me know. I'll be around to help you.