Reimbursement Through Payroll

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  • Updated 5 years ago

Hi,

Occasionally I have to reimburse staff for company expenses they have incurred i.e. tolls, App store purchases etc

How do I create the applicable payroll item so that I can reimburse them and no effect on tax, wages, and doesn't show on payment summaries?

Or is there a way to create a cheque to the employee without having to set them up as a Supplier?

Thanks in advance.

Susan

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Susan

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Posted 5 years ago

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Kevin Silberberg, Accredited Partner

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The transaction can be entered as a journal:  Credit Bank and Debit the Expense account relating to the purchase.
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Kevin Silberberg, Accredited Partner

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If you are not comfortable in performing journals, Write a Cheque in Reckon and select the appropriate Expense account.  You can select the employee's name in the cheque which will not affect reported earnings.
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Charles van Rotterdam

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Susan I'd keep it away from payroll altogether. What I do is pay the wage out of a clearing account, pay cheque (called Reimbursement) out of same clearing account, then transfer funds out of operating account to clearing account. That way the General ledger payment out of the operating account reflects the payment on the Bank statement. Easier to reconcile.
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Sally McIntosh, Accredited Consultant, Accredited Partner

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Hi Susan,

Kevin's 2nd post is the best way to do it.

You can select an employee name whilst creating a cheque. Then you get to pick the relevant expense account and tax code.

As I assume you pay it separately to an employee so they can see the 2 amounts in their bank account, you wouldn't have to use a clearing account. That is only relevant if only one amount is transferred to their bank account.

If you are using ABA files, then the write cheque function works also if you select Bank(online) as it will put it into the online banking centre. Just be careful your bank allows 2 payments to the same account (i.e. I believe from memory CBA has an issue with this).

Kind regards,

Sally McIntosh (Sally@samsolutions.com.au)