The purpose of the article is to provide the Payroll Processor with instruction on how to use the “Add Reimbursement” function in Canadian Payroll.

A reimbursement is an example of a non-taxable payment to an employee.  When an employee is being paid back for expenses that they paid for, that is an example of a reimbursement.

In this example, we are reimbursing an employee $25.00 for a miscellaneous purchase that he/she made on behalf of the company.

Step 1: Navigate to the Payroll Worksheet

Choose the “Add Reimbursement” icon from the Home Tab

Payroll Worksheet Navigation Pane

Step 2: Add Reimbursement

When you clicked on the “Add Reimbursement” icon, a new window appeared

Reimbursement Form

Set Code to “Reimburse”

Enter the dollar amount that you are paying the Employee.

In “Who received the reimbursement”, enter the appropriate filters for the employee that is receiving the reimbursement.

Choose OK

And you can see the Reimbursement in the “Other” income part of the Payroll Income Factbox.


Note: The Payment Code needs to be set up before this action can be completed.

Refer to the Deductions Setup for further information.

(Deductions Setup refers to Payroll Deductions, Reimbursements, and other earnings)

Continue with the Payroll Process