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.
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.
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:
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.
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.
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
Intuit Full Service Payroll
QuickBooks Online Payroll or QuickBooks Online Payroll Full Service
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.
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
QuickBooks Online Payroll or QuickBooks Online Payroll Full Service
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.
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.