1. Go to Payroll, Setup, Pays.
2. Enter a Pay ID and Description for this pay.
3. In the Pay type area, select Reimbursement. The items in the window change to reflect this selection.
4. Enter the applicable information for this reimbursement pay. Note that if you have a JC Category value and the Distribute to JC box is selected, then the reimbursement pay may be subject to Job proration and any job fringe calculations.
5. Click Save, and then click Close.
6. You can enter and modify this pay for an employee by going to Employee Setup, Pays.

Notes:

• Set up a reimbursement pay for expenses incurred by an employee that are not part of taxable wages, for example, mileage reimbursement and gasoline reimbursement.
• Tax items in the Pay Setup window are not available when reimbursement is the pay type, since reimbursement pays are not taxed.
• Reimbursement pays do not affect W-2s or quarterly reports.