Is there a way to setup payroll to do cents per mile (CPM) and per diem (non taxable) for truck drivers?

Hi there, @joshuaw2242. I've got your back, and I'll share some details about doing setting up your payroll to do cents per mile and per diem in your QuickBooks Online (QBO) account.

Before we proceed with the resolution, may I ask if you're trying to add the 1 cent per mile as a pay type? If so, please know that the option to add it is currently unavailable. As I check here on my end, we can only add hourly, salary, or commission as of the moment. With regards to per diem, know that these are payments not considered wages and therefore non-taxable. However, your payments will be taxable if the following apply to you:

• Payment is more than the allowable federal per diem rate
• You did not file an expense report with your employer
• Your expense report did not include the date, time, place, amount, and business purpose of the expense
• Your employer gave you a per diem and didn't require an expense report.

If the above information is met, per diem is subject to income tax withholding and payroll taxes. But, if not, recording per diem in QBO is an easy process. You need to create a payroll item and then add the amount to the paycheck.

Here's how:

1. In the left menu, click Payroll.
2. Go to the Employees tab.
3. On the Employees page, select the worker you're working on to open its profile.
4. Click the Pencil icon for Pay under Employee details.
5. Click the Add additional pay types link under the How much do you pay this employee section.
6. Locate and select the Nontaxable Per Diem Recurring amount.
7. Click on Save, then Done.

Additionally, I've got you this article in case you'd like to learn about how to reimburse employees' mileage and vehicle expense in QBO: Reimburse employees' mileage and vehicle expenses in QuickBooks Online.

You can also visit this article for more information about supported pay types in QBO: Add or change pay types in QuickBooks Online Payroll.

Should you need further assistance managing pay types in QuickBooks? Or do you have any additional QuickBooks-related concerns? Know that you can always get back to me anytime. I'll be more than happy to help you again. Take care!