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August 29, 2022
Question

QBO direct deposit, how to add reimbursement pay type (no tax impact) to employee, in Canada default tax settings appear which can't seem to be amended?

  • August 29, 2022
  • 1 reply
  • 0 views
this appears to be a QBO change, prior employees were able to have reimbursement account setup without treating amounts as taxable, now that is not an option.

1 reply

Jen_D
August 30, 2022

I'm here to help share some insights about adding a non-taxable reimbursement pay type in QBO, John.

 

The Reimbursement pay type in QBO are nontaxable payments. They don't appear on payroll tax or other tax reports. They're also not included in the wage base used to calculate percentage-driven deductions.


This is the reason why you don't see any option to mark them as taxable. To set it up, use the following steps:

 

  1. Go to the Payroll menu, then Employees.
  2. Click the employee's name.
  3. Scroll down to How much do you pay [Employee's name] section.
  4. Click on the pencil icon to add a new pay type.
  5. Mark the Reimbursement box, then enter the amount.
  6. Press Save, then Done.

 

To be familiar with the supported pay types available in the program, please check out these links:

 

 

Please reach out to me again if you have other concerns with adding reimbursements or other pay types in QBO. I'll be available to guide you with the steps anytime.