How do others handle Employee Reimbursements/Expenses?

Question

&ldquo;All of our company Managers travel &lsquo;X&rsquo; amount each week. Rather than the employee fronting the bill for travel expenses, I just give them a dollar amount on their pay check to cover it. I want to track this in payroll but I don&rsquo;t want it to be taxable and I definitely don&rsquo;t want to show it as gross wages for the employee.&rdquo; 
 At this time, the current work around I have come up with is creating a Deduct from the employee payroll calculation that is taxable. When the payroll is done manually, you can change the amount to a (-). This increases the net pay and does not calculate any taxes while having no effect on the gross wages. 
 What are you doing to track your reimbursements/expenses in payroll?

Char DeLange · Accepted Answer

From Sage 100 Contractor HELP: 
 Per diem payments cover expenses incurred by the employee during the course of work. Usually expenses are limited to travel, food, and lodging. The maximum rates are set by the Internal Revenue Service. 
 The company incurs the expense of per diem, not the employee. Therefore, the per diem provided to the employee is non-taxable. In the 5-3-1 Payroll Calculations window, set up a payroll calculation that exempts the per diem from taxes. 
 To enter per diem payments: 
 1 Open 5-2-2 Payroll Records. 
 2 In the Type list, click 8-Per Diem. 
 3 In the Pay Rate text box, enter the amount. 
 TIP: If you enter a job number on the timecard line, Sage 100 Contractor will job cost the per diem when you final-compute the timecard.

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How do others handle Employee Reimbursements/Expenses?

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