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lenw1
June 18, 2022
Question

How to add relocation expense or moving expense to salary in quick books online?

  • June 18, 2022
  • 2 replies
  • 0 views
i need this to comply with the change in 2018 where moving expense became taxable to the employee

2 replies

R
Rasa-LilaM
June 18, 2022

Thank you for visiting the Community, lenw1.


I can help answer any questions you may have about QuickBooks. To ensure accurate payroll records including taxes and forms, I have to gather more details about your concern.


May I know if this is a qualified or non-qualified moving expense? For qualified moving expenses, is it paid to a third party? Any information you can share will guide us on how to set up the relocation or moving expense.


Feel free to click the Reply button to enter your comments. I’m looking forward to your response and working with you again.

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lenw1Author
June 18, 2022

A moving company was paid directly by the church. A reimbursement request is submitted but not yet paid. The reimbursement request is for gas, a one-night hotel stay, charges for storage, and a cash payment to move storage items to the new home. I have the receipt for the initial moving company and the hotel stay. Gas charges are listed by date, amount, and place of purchase—no receipts for the gas or the move from storage to the new home.

 

I believe all of the above are taxable items.

C
ChristieAnn 11
June 19, 2022

I appreciate you for coming back to the thread and adding extra detail about your concern. I'll be sharing details on how relocation or moving expense works in QuickBooks. Then, let me help you add the said expense to ensure you'll be able to record this accurately in the program.

 

Moving expenses might be considered a fringe benefit, or they may be supplemental wages to interpret. If they are a fringe benefit, some expenses are subject to tax, and others are not. Then, once an employer pays for moving expenses under one of the two cases below, the funds are considered a fringe benefit:

 

  • The employer pays a third-party, such as a moving company directly.
  • The employer refunds an employee for moving-related expenses.

 

If either of the two circumstances above exists, the funds should be reported through payroll as a fringe benefit. Additionally, I suggest consulting an accountant before performing the procedure to ensure your records are in shipshape. They can provide suggestions on how to properly handle entries, especially to confirm if all items are taxable or not. 

 

Then, you now start adding Fringe Benefits to your pay types to perform the process of adding relocation expenses or moving expenses via payroll. To start with, you'll have to enable the fringe benefit inside the employee profile.

 

Here's how:

 

  1. Go to the Payroll menu on the left panel. Then, the Employees section.
  2. Choose a specific employee.
  3. From Pay types, click Start or Edit.
  4. Scroll down to the Additional pay types section. Then, select all relevant fringe benefits.
  5. Click Save.

 

After that, you may click this article to see the steps on how to complete the process of moving expenses via payroll: Add fringe benefits to pay checks. 

 

Lastly, you may refer to this article to view various details about pay types, deductions, company contributions, and how each impact your payroll tax reporting and how they work in QBO: Understand supported pay types and deductions in QuickBooks Online Payroll.

 

Should you have other concerns or questions about moving expenses, don't hesitate to click the Reply button below. I'm more than happy to help you, lenw1. Have a great day and keep safe!

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LollyNino_C
July 12, 2022

Thank you for getting back to us here in the Community, @lenw1. I can share with you some information about the fringe benefits of QuickBooks Online. 

 

Since you're using QuickBooks Online Payroll, I'd suggest following the steps below. 

 

Let's start by enabling the Fringe Benefit inside the employee profile. Here's how:

 

  1. Go to the Payroll menu and then select Employees.
  2. Choose the employee's name.
  3. On the How much do you pay [employee's name? Click the pencil icon. 
  4. Scroll down to Additional pay types, then select the relevant fringe benefit.
  5. Once finished, click on Save, then Done.

After that, we can now enter the value of a fringe benefit on a paycheck. I'll show you how.

  1. Be sure the Fringe Benefit pay type has already been applied to the employee.
  2. From the left menu, select Workers.
  3. Select Run Payroll.
  4. Enter the employee's regular pay and the amount in the fringe benefit field you previously added.
  5. Preview and Submit the payroll.

For more details about the process, please see this article: Add Fringe Benefits to Pay Checks.

 

Also, you can browse this article to learn more about the supported pay types and deductions: Taxability Types.

 

Additionally, I encourage running payroll reports in QuickBooks Online. This helps you view useful information about your business and employees.

 

Feel free to comment down below if you have any other concerns or questions about managing payroll in QuickBooks. I'm always glad to help in any way I can.

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