Reimburse Employees in QuickBooks Desktop

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Reimburse Employees in QuickBooks Desktop
By Dancing Numbers
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QuickBooks Desktop is a popular desktop
accounting software program, used by small
businesses and individuals to track their
finances. When an employee leaves your company,
it can be difficult to reimburse them in a timely
and accurate manner. This article will share
steps you can take to reimburse employees in
QuickBooks Desktop quickly and accurately.
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What is Reimbursement?

• Reimbursement is a process of reimbursing
  employees for expenses they incurred while
  working, such as mileage or meals. You can
  reimburse employees in QuickBooks Desktop by
  adding an item to their paychecks, or through a
  reimbursement account.
• There are a few things to keep in mind when
  reimbursing employees
• You must have enough money in your companys
  account to cover the expense.
• Dont reimburse employees for amounts that exceed
  their regular wages.
• Make sure your reimbursement policy is clear and
  concise to avoid any misunderstandings

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When Should You Reimburse Employees?
There are a few factors that you should consider
when deciding whether or not to reimburse your
employees in QuickBooks Desktop. First, consider
the expense itself. Does the expense qualify as a
cash expense? Some common reimbursable expenses
include meals and travel costs. Other items that
may qualify as cash expenses include employee
salaries and benefits, tools and equipment used
in the business, and office supplies.
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How to Reimburse Employees in QuickBooks Desktop?
When you reimburse employees in QuickBooks
Desktop, you can use a variety of methods to keep
track of and pay the employees. Here are three
ways to reimburse employees in QuickBooks Desktop
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1. Use deposits When you deposit an employees
wages into their bank account, QuickBooks
automatically calculates the appropriate
reimbursement amount and posts it to the
employees payroll account. This is the simplest
method to use, but it has two limitations You
cant easily track how much money has been
deposited in an employees account, and you cant
pay employees via direct deposit if they dont
have a bank account.
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2. Use billing codes If you have a billing code
for reimbursing employees, you can enter it into
the Reimbursement Codes field in your Employee
Payments window (in the Payroll section of
QuickBooks Desktop). Then, when you reimburse
employees, QuickBooks will automatically
calculate and post the reimbursement amount to
the employees payroll account using that billing
code. This approach is helpful if you want to
track how much money has been paid out using a
specific billing code, but it has two major
drawbacks First, not all companies have a
billing code for reimbursing employees, and
second, you cant pay employees using direct
deposit if they dont have a bank account.
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3. Use a reimbursement account If you want to
keep track of the total amount that has been paid
out to employees each month, you can create a
reimbursement account in QuickBooks Desktop. This
approach is helpful if you want to prevent
reimbursements from being mixed up with regular
payroll transactions, and it has the added bonus
of allowing you to pay employees via direct
deposit.
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