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July 13, 2023
Question

Employee reimbursement - taxes

  • July 13, 2023
  • 1 reply
  • 0 views

Hello,

 

I have an employee who on his last pay had a reimbursement.

 

Now the way that Quickbooks prints paystubs shows these reimbursements where all other forms of income are.

As a result they LOOK like they're taxed as well but to the best of my knowledge reimbursements of this nature are not taxed.

 

I have read a lot through these forums and found nothing like this.

 

How do I SHOW him that this, let's say $100, is a flat tax free reimbursement?

1 reply

July 13, 2023

Hi there seanfkehoe,

 

It's vital that all your payroll information is entered correctly in the system for your pay runs to be accurate. QuickBooks Online Payroll is a great tool able to help you pay your employees for the hours they've worked. I can provide some information about reimbursement pay and pay stubs.

 

The Reimbursement pay type in QuickBooks Online isn't taxed, but it appears as a pay type on the pay stub same as any other wage. There isn't the option to modify the pay stub format to have it show in a separate section by itself. I can see that this would be a feature that you'd like to see in the program. I recommend leaving feedback in the system by clicking on the Gear Icon, then feedback. The comments made in that section are taken into consideration when designing new features for QuickBooks Online.

 

If you have any other questions, feel free to reach out here.