Reimbursements

Employee reimbursements can be added to an employee’s check without altering the employee’s tax liability. For example, an employer may need to reimburse the employee for travel expenses or other company incurred costs that are not taxable. These reimbursements should be added to the EBMS payroll system using a reimbursement pay type. Contact your accountant for guidelines regarding reimbursements. Complete the following steps to add reimbursements to an employee’s paycheck:

1. Create a reimbursement pay type if one does not already exist. Go to Labor > Options > Pay Types tab. Click on the New button to create a new pay type.
   

1. Enter a reimbursement Description such as Reimburse or Mileage to be more descriptive.

2. Enter the Base type as Dollar.

3. Set the Type option as Reimbursement and click OK to save and exit.

2. Enter the pay type into the employee’s pay rate list. Go to Labor > Workers > Pay tab. Review the Workers > Changing Workers Information section of this manual for more details.

3. Enter an additional detail line within the employee’s timecard with a pay type as reimbursement pay (whatever the pay type description) and enter the reimbursement amount in the pay column.

NOTE: Reimbursement pay will not change the taxable gross amounts for any taxes but will affect the gross pay totals on the employee’s history tabs.