These instructions are for a situation where an employee spends their own out-of-pocket money for a business expense and they need to be reimbursed on a paycheck.

1. From the Payroll Command Center select the blue button for Payroll Categories.
2. Select the Deductions tab at the top.
3. Click New and set up a deduction called Employee Expense Reimbursement.
4. In the Linked Payable Account field, enter the expense account that you want to use.
   • If you need to create a new account to track expense reimbursements, click the New button in the account "Select From List" window and then enter the appropriate information for that expense.
5. A message will appear informing you that the account for deductions withheld is usually a liability account. Click OK.
6. In the Type of Deduction section of the window, select User-Entered Amount per Pay Period.
7. In the Deduction Limit section set it to No Limit.
8. Click on the Employees button, and put a check mark to the left of the applicable employees' names. Then click OK.
9. Click on the Exempt button. Here you can check off your tax categories to mark this exempt from taxes, however you may want to confirm these options with your accountant.
10. Click OK to close out of the Deduction window.
11. You are now ready to write a paycheck.
12. While processing payroll in the Select & Edit Paychecks window click the arrow in the Edit column to edit the paycheck.
13. On the check, in the Employee Expense Reimbursement line, enter the amount of the expense reimbursement as a Positive amount, even though the other deductions will be negative amounts.
14. You should see the check amount increase as you are paying this expense back to the employee.
15. Record the check.