Expense reimbursements
The BEST way to do Expense Reimbursements is by using our Business Payments feature. This will keep your company expenses and payroll expenses separate.
If you are not using Business Payments you could reimburse employee expenses as part of the payroll process.
Follow these steps to set up and use a custom rule for refunding your staff for expenses
- Login to your account and navigate to
-> PAY RULES -> EARNINGS
- Click "Add New Rule". Give it a memorable name like "Expense Reimbursements" - this will show on your employee pay slips. Uncheck the boxes for CPP, EI, Fed and Prov Tax as well as 'vactionable' and 'occasional earnings' - we're essentially creating a custom earning that is not taxable and not subject to automatic vacation calculations. Remember to click the SAVE icon.
- Now when you perform a pay run you'll be able to use the "ADD OTHER" button on the salaries or timesheets page to enter this custom earning for each employee. Select your earnings rule from the drop down, enter an amount and click +Add Another or Add and Submit as needed.
Pro-Tip: This earning will show up on your reports as part of your total earnings/wages, but it will not reflect as taxable income to the employee. Take that into consideration when posting your information to your books. Also cosider using a Special Run for this payment to keep it separate in your reporting. If you do this, please remember to close your period both before nad after this special run to ensure it is reported separately. (Available on all paid plans).