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C
cupidchan-pistevo
November 20, 2022
Question

How to categorize Payroll Reimbursement

  • November 20, 2022
  • 1 reply
  • 0 views

Background: I am using QuickBooks Online and have Payroll subscription. My employee has a $500 reimbursement for training and what I did was adding a Business Reimbursement when running the payroll so that he can have this $500 back in the form of his paycheck. 

 

Now, when I review the transaction in QBO,  I see that his paycheck correctly add that $500 and I can match that transaction as "Payroll Check: Direct Deposit Payable DD".

 

Question: How can I categorize $500 out of this "Payroll Check: Direct Deposit Payable DD" as Training Expenses?

 

Please Note: I have ALREADY paid that in the form of paycheck. Hence, it is different than what's suggested in this post which I came across when I did my research for this question: https://quickbooks.intuit.com/learn-support/en-us/help-article/payroll-processes/contact-payroll-support/L08Yi5p07_US_en_US?uid=lapjm3zb

1 reply

K
Kevin_C
November 20, 2022

Hello there, @cupidchan-pistevo. 

 

I'll provide some details on how you can properly categorize a payroll reimbursement in QuickBooks Online (QBO) Payroll.

 

You'll want to review first the accounting preferences you've set up for the reimbursement payroll item. Here's how:

 

  1. Go to Settings ⚙, then Payroll settings.
  2. Select Edit ✎ next to Accounting.
  3. Locate the reimbursement item and check the account associated with it.

 

See this sample screenshot:

 

Check if it's assigned to the correct account you want them to track. Simply click Edit ✎ if necessary. Then, choose which account the transaction for the specific payroll item should go to. Once done, tap Continue.

 

After assigning the correct account to the reimbursement item, here's how you can include your past transactions in the current changes:

 

  1. Scroll down to the Want to update existing transactions section, then select Edit ✎. 
  2. Add a Start Date. We'll change all accounts except in the Bank Account section.

For more information about this process, see this article: Change your accounting preferences in QuickBooks Online Payroll.

 

Additionally, you can also pull up a variety of payroll reports in QBO. This will give you a closer look at your employee's total wages, deductions, and tax information for a certain period. For a complete list of available payroll reports and how to pull them up, visit this article: Run payroll reports.

 

Let me know if you have any other questions about categorizing a reimbursement in QuickBooks. I'll be happy to help you out. Take care!

    C
    cupidchan-pistevoAuthor
    November 21, 2022

    This is very clear and detailed, @Kevin_C! I can follow your instruction to complete the task. But I have one more question: How can I attach a receipt to the training, just like what I can do if this is a standalone transaction? Thanks!

    D
    DebSheenD
    November 21, 2022

    I appreciate you performing the step to categorize payroll reimbursement in QuickBooks. I'm here to help you attach receipt of your previous transaction, @cupidchan-pistevo.

    We can attach the receipt by editing the transaction. Here's how:
     

    1. Open the transaction.
    2. Choose Attachments.
    3. Browse and select the document you want to attach.
    4. Tap Open, then Save and close.

    For more details, please see this article: Add or delete attachments in QuickBooks Online.

    Additionally, I would encourage you to reconcile your accounts. This will help you effectively monitor your transactions and detect any possible errors. For the step-by-step guide, you can check this article:  Reconcile an account in QuickBooks Online.


    Don't hesitate to let me know if you have any other questions by dropping a comment below. I’m here whenever you need me. Take good care.

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