Accounting for Reimbursement of Employee Out of Pocket Expense

Hello BHGSBookkeeper,

Thank you for connecting with the Community! I will be delighted to share the steps to reimburse the employee, but I encourage you to double-check with your accountant to ensure you're using the correct accounts. The first step would be to create the reimbursement items. 

1. Go to Employees, and select Manage Payroll Items.
2. Choose New Payroll Item.
3. Pick Custom Setup, then select Next.
4. Select Addition, then select Next.
5. Enter the name of the Reimbursement item. Select Next.
6. Select an expense account for tracking this item.
7. Add the Tax Tracking type to None. Then select Next.
8. Under Taxes, none should be selected. Select Next.
9. Choose to calculate on Net Pay. Then select Next.
10. Enter a Default Rate. Then select Finish.

From there, you would need to make sure the reimbursement amounts are posted to the correct account in your chart of accounts and run the payroll with the reimbursement amount. The steps for these can all be found in the article below. 

• Reimburse your employee in QuickBooks Payroll

Dont hesitate to let me know if you have further questions or need clarification! My team and I will be around to help. Take care for now.