Reimbursement is basically a non-taxable payment that can be used to repay the employee for business-related expenses. In simple words, if the employee has paid a specific amount for business-related expenses out of pocket then the company reimburses such employees. In QuickBooks, employees can be reimbursed via Direct Deposit. This not only sends the payment fast but also a convenient and time-saving method. To know the procedure of QuickBooks employee reimbursement using Direct Deposit, you can read the following guide carefully.
In this detailed guide, we will cover different versions of QuickBooks. Depending on your QuickBooks variant, you can continue following the steps for QuickBooks employee reimbursement via Direct Deposit.
Learn About Employee Reimbursement
If the employee pays out of pocket for the company’s expenses, the company repays the employee in the form of reimbursement. However, this does not include the expenses having tax implications, e.g., moving expenses. Reimbursement includes only expenses that are incurred for regular or limited business travel.
That is because such payments are not taxable and don’t display on the payroll tax, W-1 forms, or other reports. Such payments are also not counted in the wage base that is used to calculate the deductions, e.g., 401 (k) amounts. To reimburse the employee, you can mention the unique name or keep the default name for the reimbursement pay type. Thereafter, you can send the payments to the considered employee. If required, you can set up single or multiple QuickBooks employees reimbursements.
How to Reimburse an Employee via Direct Deposit in QuickBooks?
To reimburse the employee using QuickBooks Direct Deposit, one has to select the relevant employee from the list. After that, you can add the additional pay option and choose the Reimbursement option. Once done with the setup, you can run the payroll, add the amount and submit payroll.
For QuickBooks employee reimbursement via Direct Deposit, you can pursue the following instructions with detailed steps:
- Open the “QuickBooks”’ program on your computer.
- Then, click on the “Workers” option on the home screen. This option should be located on the left navigation bar.
- Here, you need to be sure that the “Employees” option is chosen at the top of the window.
- After that, you can select the employee from the list. Make sure you select the relevant person to whom you want to reimburse.
- Once the employee is chosen, you can click on the “Pencil icon” next to the “Pay” option.
- Here, you have to select the blue link titled “Add additional pay types”.
- Now, select the “Reimbursement” box.
- After that, click the “Done” button.
- When you are ready to pay the employee, click on the “Run Payroll” option located at the top right.
- Here, you will see the “Reimbursement” section and a section for employees. At this point, you can add the amount that is supposed to be sent.
- Now, select the employee. In case you have more employees selected then you should remove the checkmark from the left and make sure that only the employee whom you want to pay is selected.
- Then, hit the “Preview Payroll” button.
- After checking the details, you can click on the “Submit Payroll” option.
- Once done, press the “Finish Payroll”.
We have now given the best information to reimburse your employees using the direct deposit. Be sure that you select the relevant employee and enter the correct amount. Also, don’t forget to preview the details before sending the payment.
Set Up Single or Multiple QuickBooks Employee Reimbursement via Direct Deposit
Users have two ways to set up the reimbursement pay type for the employees. Whether you want to set up the single or multiple reimbursement pay types, QuickBooks allows you to do that. The procedure for this can be different depending on the version you are using. Continue reading to know more.
Single Reimbursement Pay Type for the Employees
In the following discussion, you will know how to reimburse the employee on Intuit Online Payroll Intuit Full Service Payroll, QuickBooks Online Payroll, and QuickBooks Online Payroll Full Service. Let’s read more about QuickBooks employee reimbursement via Direct Deposit.
Intuit Online Payroll
- Navigate to the “Employees” section.
- Then, select the name of the employee.
- Go to the “Pay” section and hit the “Edit” button.
- After that, click on the “Reimbursement” box.
- [This step is optional] Enter the amount in the “Default” field if you want your employees to receive the same amount every time you reimburse them.
- Once done, click the “OK” button.
Intuit Full Service Payroll
- Move to the “Employees” section.
- Then, select the name of the considered employee.
- Click on the “Edit: button from the “Pay” section.
- Here, you can place a checkmark for the “Reimbursement” box from the “Additional pay”. In case it is not included in the list then you can connect with the support team.
- After that, hit the “Edit” button.
- Then, enter the unique name for the pay type (optional) or add the recurring amount.
- Once done, click the “Save” button.
QuickBooks Online Payroll or QuickBooks Online Payroll Full Service
- Select the “Employees” option from the left.
- From the list, you can select the name of the employee.
- Go to the “‘Pay” section.
- Click on the “Edit” pencil icon.
- Go to the “How much do you pay” option and hit the “Edit” pencil icon.
- Now, choose the “Reimbursement” box. If you don’t see the box then select the “Even more ways to pay” option.
- Enter the amount in the “Default” field, if you want your employees to receive the same amount every time you reimburse them. However, this step is optional.
- Select the “Done” button.
If required, you can add more reimbursements. All you have to do is add the name and save the details. You can also select other employees once you create the named reimbursements.
Multiple Reimbursement Pay Type for the Employees
To add reimbursement for multiple employees, you can continue reading the blog. Here, we will cover the Intuit Online Payroll, QuickBooks Online Payroll as well as QuickBooks Online Payroll Full Service
Intuit Online Payroll
- Go to the “Employees” section.
- Then, click on the name of the employee.
- Move to the “Pay” section and click on the “Edit” button.
- After that, move to the “Reimbursement” box. In case you don’t find this box then click on the “Show all pay types” option.
- Next to this box, you need to click on the “add/edit types” link.
- Thereafter, go to the “Add Reimbursement name” using the drop-down menu.
- Once you enter the name, click the “Save” button.
QuickBooks Online Payroll or QuickBooks Online Payroll Full Service
- Click on the “Employees” option from the left.
- Choose the name of the employee from the list.
- Click on the “Edit” pencil icon from the “‘Pay” section.
- Select the “How much do you pay” option and click on the “Edit” pencil icon.
- Then, mark the “Reimbursement” box. In case you don’t see the box then select the “Even more ways to pay” option.
- Click on the “Add reimbursement type”.
- After that, enter the name and amount.
- Select the “Done” button.
In case you wish to add more reimbursements then again add the name and save the details. You can pick other employees once you are done creating the named reimbursements.
Conclusive Lines
Reimbursing the employees is easy in QuickBooks. All you are required to do is set up the reimbursement pay type, select the relevant employee, and send the payment. Here, we have shown you the whole procedure of QuickBooks employee reimbursement via Direct Deposit on different QuickBooks variants.
Do you want to pay your vendors via Direct Deposits? Learn with us how to set up direct deposit for vendors in QuickBooks.