QBO: Nontaxable reimbursements show as gross pay????

I appreciate you raising this matter, @SirMatthew. I can see why you'd want reimbursements reported separately from gross pay. Currently, QBO Payroll includes nontaxable reimbursements in gross pay for reporting, and there isn't a way to display them separately.

To clarify, when you process reimbursements through QBO Payroll, they are included in gross pay for reporting purposes. However, these reimbursement amounts are generally non‑taxable and should not be treated as taxable income; they do not affect the employee’s tax obligations.

As a workaround, if you prefer not to include the reimbursement in gross income, you can create a separate check. That ensures the reimbursement won’t be reported as part of the employee’s taxable wages.

To help you manage payroll taxes and forms in QBO, feel free to check this article: Pay and file payroll taxes and forms in Online Payroll.

If you have further questions or concerns about managing your payroll in QBO, you can click the Reply button, and we'll respond to you as soon as possible.