Reimbursing Mileage In QuickBooks
Question
I have a client who wishes to pay staff for mileage on payroll checks as well as bill clients for that mileage - is it possible to pay staff for the mileage on payroll check and have it appear when doing billing to customer? If I understand correctly the mileage reimbursement would have to be set up as a "wage" in order for it to be in the section that allows tagging to a customer - if that is correct, won’t the mileage amount show up on the W2? Response When creating a paycheck [in QuickBooks], choose the customer name to be billed for the mileage under Customer Name. When you create an invoice for that customer, fill in the Customer Name at the top of the invoice form, then click Time and Costs. Then click the Time tab and you should see the mileage that was paid to your employee. Choose that and it will show as an item on the invoice. If you set up the mileage reimbursement as a Wage item, it will show as a taxable item on the employee’s W-2 – which you don’t want to happen in this case. Set up the mileage reimbursement item as an Addition. Also, very important, all Addition and Company Contribution items must have the Track Expenses by Job option clicked (you can edit the item to check this box). When you are creating the paycheck, in the Other Payroll Items box, choose the Mileage Reimbursement you have set up. Enter the rate and the number of miles. This amount will calculate and be added as an after tax item to the employee’s paycheck. Most importantly, the customer name needs to be chosen in the Earnings section. <<BACK TO NEWS | 
