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Anonymous
March 9, 2020
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Travel Reimbursements for Members

  • March 9, 2020
  • 1 reply
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Hi, I'm the CFO (not an accountant!) of a new business (LLC) that provides healthcare consultation for long-term care facilities. We just recently started a pilot with a large corporation and five of their nursing homes. In our contract with the corp, it's stated that they will be paying for all travel expenses incurred by our employees/members; this includes, mileage, parking fees, tolls, lodging, airfare, taxis, etc., including MEALS). The corp is paying us (the business) for travel expenses and we're reimbursing our members... so it technically should be a "wash". I was just told that we can't include meals in travel reimbursements?? That is in our contract with the corp, to reimburse meals. Can anyone provide guidance on that?

 

Also, how do I "log" these reimbursements to our employees/members?? It should not be taxable income obviously. We don't have payroll set up in our Quickbooks Online subscription because we're not paying any of us employees/members yet. 

 

Thanks in advance!

Best answer by IamjuViel

Hello, @901319.

 

You can enter an expense or check transaction to record your employee's reimbursements.

 

Here's how:

  1. Go to the New (+) icon.
  2. Choose either Expense or Check.
  3. From the Payee ▼ drop-down and find the name of your employee.
  4. Select the Category ▼ drop-down, then select a liability or reimbursement account.
  5. Enter the reimbursement details.
  6. Click Save and Close.

You can browse this article for more detailed steps: How To Reimburse an Employee.

 

Also, I'd suggest consulting with an accountant so you'll be guided in accounting your business-expense related transactions.

 

Lastly, you can read through these articles to help you learn more about managing your transactions in QuickBooks:

Get back to us if you have other questions. I'm always here to help.

1 reply

IamjuViel
IamjuVielAnswer
March 9, 2020

Hello, @901319.

 

You can enter an expense or check transaction to record your employee's reimbursements.

 

Here's how:

  1. Go to the New (+) icon.
  2. Choose either Expense or Check.
  3. From the Payee ▼ drop-down and find the name of your employee.
  4. Select the Category ▼ drop-down, then select a liability or reimbursement account.
  5. Enter the reimbursement details.
  6. Click Save and Close.

You can browse this article for more detailed steps: How To Reimburse an Employee.

 

Also, I'd suggest consulting with an accountant so you'll be guided in accounting your business-expense related transactions.

 

Lastly, you can read through these articles to help you learn more about managing your transactions in QuickBooks:

Get back to us if you have other questions. I'm always here to help.

A
Anonymous
March 9, 2020

@IamjuViel, thank you for your reply. I do understand that I can create a new expense to do it, this helps. :) However, I want to make sure that this isn't going into a taxable category as it's a travel expense reimbursement for an employee not taxable income. Do you know if doing it as an "Expense" as the Account Type and "Travel" as the Detail Type acceptable in that sense? Thanks!

 

@IamjuViel wrote:

Hello, @901319.

 

You can enter an expense or check transaction to record your employee's reimbursements.

 

Here's how:

  1. Go to the New (+) icon.
  2. Choose either Expense or Check.
  3. From the Payee ▼ drop-down and find the name of your employee.
  4. Select the Category ▼ drop-down, then select a liability or reimbursement account.
  5. Enter the reimbursement details.
  6. Click Save and Close.

You can browse this article for more detailed steps: How To Reimburse an Employee.

 

Also, I'd suggest consulting with an accountant so you'll be guided in accounting your business-expense related transactions.

 

Lastly, you can read through these articles to help you learn more about managing your transactions in QuickBooks:

Get back to us if you have other questions. I'm always here to help.

 

Michael K
Michael K
March 9, 2020

Thanks for getting back to us, @901319.

 

Accounts by default aren't taxable, so you can enter the expense and as long as you don't have it marked as taxable you should be good to go. In terms of what account and detail type you should use, you'd want to touch base with your accountant to ensure that you're categorizing it under the correct expense type. They have the knowledge and expertise to make sure everything goes smoothly for you and your business.

 

If you need to find an accountant in your area, I recommend checking out our FindAProAdvisor website. There's thousands of certified ProAdvisors and CPAs out there who'd be willing to help.

 

Just shoot me a reply if you have any other questions. I'm determined to ensure your success. Have a good one!

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