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A
ajsutter
May 18, 2022
Question

Using payroll deduction for employee to reimburse a personal expense charged on company credit card

  • May 18, 2022
  • 2 replies
  • 0 views

After returning from a business trip, two employees had left the company credit card as their default card on ride share apps.  They both accrued personal trips on the company card in error.  They both requested that I deduct the amount from their paycheck.  What would be the easiest way to do this while being able to match the reimbursement to the expense.  

2 replies

C
Charies_M
May 18, 2022

Thanks for checking this with us, ajsutter.

 

Let's record your personal expense charge on your company business account. Follow the steps below to be guided:

  1. Go to Payroll, then Employees.
  2. Select the employee’s name.
  3. In the Pay types section, select  Edit.
  4. Scroll to the Additional pay types section and select Reimbursement.
  5. When you’re finished, select Save.

 

Once done, you can create a paycheck and enter an amount in the Reimbursement field.

 

To create a check: 

 

  1. Go to the  Payroll menu, then select Employees.
  2. Click Run Payroll.
  3. Select your desired payroll schedule, then Continue.
  4. Fill in the necessary information.
  5. Select Preview payroll.
  6. Choose Preview payroll details or Submit payroll.
  7. Select Finish payroll.

 

More about the whole process of reimbursing an employee can be found in this article: Reimburse your employee

 

Anything else you need help with can be answered here in the Community. Just let me know and I'd be happy to assist. Have a good one.

A
ajsutterAuthor
May 20, 2022

The employees need to reimburse the company for personal charges they put on the company credit card.  The company is not reimbursing the employee.

    katherinejoyceO
    katherinejoyceO
    May 20, 2022

    Thanks for getting back to us with clarification on your concerns, @ajsutter. I'm here to guide you in deducting the personal charges from the employees' paychecks.

     

    To do this, you'll need to l set up a Payroll Deduction item from Net pay as wage garnishment. 

     

    Here's how: 

     

    1. Go to the Workers tab, then click Employees.
    2. Select the employee's name, then select Edit next to Pay.
    3. In section 5, select + Add a new deduction or + Add deductions.
    4. From the Deductions/contributions dropdown menu, choose New deduction/contribution.
    5. Choose a Deduction type and Type from the small arrow icon, then enter Provider name(appears on a paycheck).
    6. From the Amount per pay period icon, choose $ amount or % of gross pay and enter the $ amount or percentage. Do the same for the Company-paid contribution as applicable.
    7. Click OK, then Done.

     

    To match the reimbursement to the expense, use the same account in the payroll item to be used for the deduction on the employees' paycheck. 

     

    To make sure your books are correct, I'd recommend consulting an accountant.

     

    Keep in touch if you have additional questions. I'll be here to guide you more. 

    N
    Nina27
    September 12, 2024

    Are the same steps for Quickbooks Desktop?

      K
      KimberlyS
      September 13, 2024

      The navigation process in QuickBooks Desktop (QBDT) will differ from QuickBooks Online as they're different platforms with distinct features, Nina27. I'm here to provide the converted steps to reimburse an expense charged to your company's account for your convenience.

       

      In QBDT Payroll, you can create a payroll deduction item to subtract an amount from an employee's paycheck to reimburse personal expenses paid by your company. Let me show you how.

       

      1. Head to the List menu, then select Payroll Item List.

      2. Click the Payroll Item dropdown at the bottom and choose New.

      3. Pick Custom Setup, then hit Next.

      4. Follow the on-screen instructions and note the following:

      • Payroll item type: Select Deduction.
      • Name used in paychecks and payroll reports: Key in a name.
      • Agency for employee-paid liability: Leave the Agency Name and Agency Identification Number field blank. As for the Liability account, consult your accountant to know if you'll use Payroll Liabilities or another account.
      • Tax Tracking type: Pick None if it's non-taxable. Otherwise, choose the appropriate deduction type.
      • Taxes: Ensure not to select anything and click Next.
      • Calculated based on quantity: Determine how you want this item to be calculated.
      • Gross vs. net: Select net pay to prevent this from affecting the gross wages that appear on your forms.
      • Default rate and limit: Leave all of the fields blank.

      5. Select Finish once done.

       

      Moreover, you can add the item to the employee's profile to automatically include it when running the payroll. Proceed to Step 2 under QuickBooks Desktop Payroll in the Set up a new deduction item section in this material for guidance: Set up, change, or delete employee-paid payroll deductions.

       

      On the other hand, consider running payroll reports if you want to review payroll-related data, depending on your business needs.

       

      Kindly utilize the Reply button on this thread to notify us of any future concerns you may have when reimbursing personal and company expenses in QuickBooks Desktop Payroll. You can rely on us to share all the feasible solutions applicable to your situation.

      T
      trm05
      October 3, 2024

      Got the payroll deductions correct. Now, how do I credit my expense line item, such as travel,etc.

       

      Ex: employee used the company card for gas in their personal vehicle. It has been deducted from payroll, but the initial charge was placed into the travel expense line account. I need to credit the travel account to have proper P&L reports. 

      What is the best way to go about this?  

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