How do I enter a taxable reimbursement to an employees paycheck

Hi there, LE55.

Thanks for joining us here in the Community. I'm happy to provide some info so you're able to add a taxable reimbursement to your employee's paycheck in QuickBooks Online Payroll.

This can be done by adding a custom table pay type to the employee's profile, then entering the amount during payroll. Doing so ensures the reimbursement is taxed and included on the employee's W-2. Here's how to get this recorded:

First you'll need to set up the taxable reimbursement pay type:

1. Go to Payroll and select Employees.
2. Click the employee's name and select the pencil icon (edit) next to Pay.
3. Under How much do you pay, select Add additional pay types.
4. Select Even more ways to pay... and choose Reimbursement.
5. Optional: Rename it (e.g., "Taxable Reimbursement").
6. Important: Ensure the tax tracking type is set to include taxes (if it's a taxable reimbursement, it may need to be mapped to behave as wages/fringe benefit).
7. Click Done. 

The you're ready to add the amount to a paycheck:

1. When running payroll, select the employee.
2. Locate the newly created Reimbursement field in the preview paycheck screen.
3. Enter the taxable amount.
4. The amount will be added to the net pay, subject to taxes.

The following article provides additional info about reimbursing your employee in QuickBooks Online.

That will do it! Please feel free to drop a comment below if you have any other questions. The Community always has your back.