I'm here to help you how to manage the gifts to your employees, TeresaMHill.
In QuickBooks Online, reimbursement and non-taxable per diem are the pay types that are exempt from tax deductions. You can it one of them on the employee's profile if you want to report this on your payroll.
Let me show you how:
- Go to Payroll from the left menu, then select Employees.
- Choose the employee's name.
- Select edit (pencil) icon beside Pay.
- Under How much do you pay, select Add additional pay types.
- Mark Even more ways to pay... drop-down, then select Reimbursement or Non-taxable per diem.
- Enter other information.
- Click Done.
Once the item is added, you can assign this to another employee. After assigning it, check your accounting preferences to ensure it is posted in the correct accounts for exporting purposes.
Then, you can start running your payroll and pay employees.
If you don't want to report this payment to your payroll, you can create a non-taxable donation item. Then, use it when you write a check for your employees.
Upon sharing this, I still recommend consulting your accountant for specific instructions. This is to ensure you have accurate records on your book.
Feel free to leave a comment below if you need anything else. I'm always right here whenever you have follow-up questions about recording the money collected as monetary gifts to your employees.
