Reimburse Employees Home | FAQs & Troubleshooting

 

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 Overview

To reimburse employees for expenses, such as a rental car or meals, set up an earnings code using the Expense Reimbursement tax rule.

 

To set up an earnings code for reimbursing employees

1. Select Payroll Setup menu > Earnings Code Maintenance.
2. Enter a new earnings code and description. For more information, see Earnings Code Maintenance - Fields.
3. In the Earnings Type field, select Miscellaneous.
4. If the reimbursement amount will always be the same, enter the amount in the Fixed Amount field. Otherwise you can manually enter the amount in Payroll Data Entry.
5. In the Tax Rule field, enter the code for the Expense Reimbursement tax rule.
6. Make other selections as needed, and then click Accept.

When you use this earnings code in Payroll Data Entry, the reimbursement amount will not be included in employees' total wages or affect taxable wages for state and federal withholding purposes.