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
Step 2: Add Reimbursement
When you clicked on the “Add Reimbursement” icon, a new window appeared
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.
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.
(Deductions Setup refers to Payroll Deductions, Reimbursements, and other earnings)
Continue with the Payroll Process