Payroll Deductions

Welcome to the QuickBooks Community, @Marissa1402. Thanks for choosing QuickBooks as your accounting partner. I'm here to ensure you'll be able to pay back the employee and set up your company seamlessly.

Let's first start by reimbursing your employee using your QuickBooks Desktop (QBDT) product. The initial step is to create a reimbursement item. Here's how:

1. In your QBDT company, go to Employees and select Manage Payroll Items.
2. Next, click New Payroll Item and choose Custom Setup. Then, select Next.
3. Select Addition and click Next.
4. Type the name of the Reimbursement item. Then, select Next.
5. Then, select an expense account for tracking this item.
6. Set the Tax Tracking type to None. Then, click Next.
7. Under Taxes, none should be selected. Select Next.
8. For amounts paid per mile/kilometer, select the Based on Quantity checkbox. Then, click Next.
9. Choose to calculate on Net Pay. Then select Next.
10. Enter a Default Rate. Then, select Finish.

Once done, update the accounting preferences to ensure the reimbursement amounts will be posted to the correct account. 

After that, you'll now have to add the reimbursement item to your employee’s record:

1. Navigate to the Employees menu and select the Employee Center.
2. Find and double-click the employee's name.
3. Next, go to the Payroll Info tab.
4. Then, add the item from the dropdown list under Additions, Deductions, and Company Contributions.

When finished, create a paycheck for that employee. The reimbursement item will show in the Other Payroll Items area of the Preview Paycheck screen. From there, enter the amount of the reimbursement.  

For reference about the process, please see the steps for QuickBooks Desktop Payroll in this article: Reimburse your employee.

Then, I've added these wonderful resources that you can access for guidance in setting up a company file. This also includes a compilation of video tutorials to navigate the program:

• Get started with QuickBooks Desktop
• Videos for QuickBooks Desktop

Please let me know how the steps go. I'd love to know updates about paying back your employee and setting up your company file. Also, if you have additional queries regarding the process, feel free to post a reply below. I'm always around to lend a hand. Thanks for dropping by.