Note: Consult your Accounting professional to determine if reimbursements should be properly made through Payroll.
- In Payroll 7:
- In Configuration, click Pay Types.
- Create a Pay Type for the reimbursement with a pay category of Other.
Note: If reimbursing an employee for nontaxable items, ensure all withholding settings (federal, state and local) are set to Do not withhold tax or report and do not include on Line 2 of the 941.
- Load the appropriate schedule.
- Save and close the pay type created.
- Add the pay type to the employee record on the Compensation/Deduction tab.
- Save the employee record.
- Create the calculation.
To reimburse an employee through Accounts Payable:
- Create a one-time check for the employee
- To track the employee information in Accounts Payable: