This article is for QuickBooks Desktop Payroll users who wanted to create a non-taxable reimbursement payroll item. The items for which you can create a non-taxable reimbursement are given below:

  • Mileage
  • Travel
  • Non-taxable insurance

Create A Non-Taxable Reimbursement Payroll Item

We will also show you how to add a new payroll item because this is the first step you will have to follow in order to create a non-taxable reimbursement payroll item.

Add A New Payroll Item

  • Choose Payroll Item List from the List menu
  • Click on the Payroll item button
  • Click on New
  • Select the Custom Setup button (only in US version) and click Next
  • Choose the item you want to add and click Next

After adding up the new item in the list you will need to set up that item under account. We will show you how:

Set Up The New Item

  • If you want to track travel or mileage amount then choose an expense You can also select asset account if there is advance to the employee.
  • Tax tracking type should be set to None. This will help the amounts not to report on tax forms
  • Click on Next
  • If you are calculating the amounts per kilometer or mile then the Based on Quantity box should be selected or checked.
  • Again click on Next
  • Select the Net pay to calculate on that day > Click Next
  • Type the Default Rate and Click on Finish

Now after setting up the added item you will need to add that item to the employee’s record to finish this process. Have a look

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Add The Item To The Employee’s Record

  • Go to the Employee’s Center from the Employees menu
  • Select the Employee’s name you want to add the item for
  • Navigate to the Payroll Info tab
  • Search that item from drop-down list under Additions, Deductions, and Company Contributions and add the item to the list

When you create paychecks then make sure to check the Other Payroll items area of the Preview Paycheck window, you can see the item which you have added in the list. Type the accurate amount in the Quantity column if the item is based on quantity.

Technical Support For QuickBooks Desktop Payroll

This easy guide shows you how to create a non-taxable reimbursement payroll item in no time. But some users face issues while doing this process because they have not updated their payroll or QuickBooks. So it is advised by QuickBooks experts that you should go through all the updates available before doing this process. You can also reach them at QuickBooks Payroll Support Phone Number 1888-382-9112 and get unlimited help from certified technicians of QuickBooks. You can also chat with the experts through the QuickBooks Live Chat Support option.