How to reimburse an employee purchase through payroll

SOLVED

one of our truck drivers purchased wipers and paid cash I want to reimburse him the monies on his paycheck but I don't want it recorded as income I would like to have it go directly to the proper expense account if that is possible.

Parents
  • 0
    verified answer

    Choose or create a G/L account that will be used specifically for payroll reimbursements.

    Set up the income type as 'Reimbursement' and give it an appropriate name.

    Pay the employee the total amount of the reimbursement with the next pay run.

    Enter the first lines of the vendor payable invoice as usual (item, GST, etc.) and add a last line (without GST) with a negative dollar amount for the total of the reimbursement.

    This results in a full record of the amount paid to the vendor, and for what, with the GST information.  The reimbursement G/L account will normally balance to zero.

    ***************************************************************************************

    Another way is to set up the employee as a vendor, and enter the purchase and payment as you would any other vendor.   (make note of the GST number when entering the invoice.)    

    For a number of reasons, I prefer reimbursing through payroll.

  • 0 in reply to RandyW

    Okay I started to set this up as you suggested and a warning appeared on my screen.  " for the incomes you have modified, your changes will remove the tracking of insurable hours from your employees ROE forms and payroll records"  Now my first thought was that the line I chose has never been used (Income 10) and that I should ignore this, as I feel that it would not effect anything.  But being a little cautious I figured I should ask before clicking okay.

  • 0 in reply to Vance

    No - you do not want to use an income type, it is in the deductions that you will set up the new Reimbursement' and when entering on payroll it will be entered as a negative amount in order for the amount to be 'added' to paychq total.

    You should not be verifying answers until you have tried it and it works. In your case it looks like what you are trying to do is not working but because you 'verified' the answer we think your problem has been solved and we don't look any further for additional questions that may be asked.

  • 0 in reply to Smith and Co

    Ooops, sorry - my error. I just tried this and it does work properly - my thinking was the reimbursement income would still be added to earnings even if not taxed for source deductions.

    RandyW's method is a good one.

  • 0 in reply to Smith and Co

    Sorry about the quick acceptance first time user and the answer seemed to be good, I will wait until I attempt in the future.  Now to your answer I went ahead and accepted the change, unfortunately the re-imbursement did not show up in my payroll, am I missing something that should be done after saving the changes?  As I would like to use this more often in the future.

  • 0 in reply to Vance

    You do need to go into your employee profile and put a check mark next to that income so that it shows up when doing his payroll.

    Did you also go into 'Names - Income & Deduction' to rename it.?

    And then did you go into 'Linked Accounts' to select the G/L account that will be used specifically for payroll reimbursements?

Reply
  • 0 in reply to Vance

    You do need to go into your employee profile and put a check mark next to that income so that it shows up when doing his payroll.

    Did you also go into 'Names - Income & Deduction' to rename it.?

    And then did you go into 'Linked Accounts' to select the G/L account that will be used specifically for payroll reimbursements?

Children
  • 0 in reply to Smith and Co

    Okay so to get this straight I go to Incomes change the selected line to re-imbursement (click OK and YES). Then go to Names - Incomes & Deductions  change the name to re-imbursement (if it hasn't changed already). Then to Linked Accounts - Incomes (select appropriate Expense Account). Then to Payroll to Employee profile and on the Income Tab check mark Re-imbursements then save.  Then Bobs you uncle.