[Mary Mallazzo]

Hello
Question regarding expense reimbursements vs Gross Wages.  We have expense reimbursements in payroll that are set up as pay codes coded as “business expense” and tax exempt.
The issue is that they are reflected in the employee’s Gross Wages.  How should we be handling these reimbursements so that they do not reflect in the employees’ Gross Wages?
We do not want to process thru A/P.

Thank you

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Mary Mallazzo
Fromkin Brothers
Edison NJ
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[Thaddeus Suter]

Unmark the “Report as Wages” check box on the Pay Code setup and roll it down or unmark individually on the Employee Pay Code Card.
You can also mark that box and then route these reimbursements to a separate line/box on the W-2 while keeping them tax exempt based on the Subject To Taxes check boxes.

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Thaddeus Suter
Retus, Inc
HELOTES TX
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[Mary Mallazzo]

Simple!

Thank you

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Mary Mallazzo
Fromkin Brothers
Edison NJ
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[Mary Mallazzo]

We do have the pay code set up that way.  It is not the W2 that is the issue.  The reimbursement is reflected in the 941 report . So as a result, the 4th qtr 941 reports do not equal the YTD federal wages.

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Mary Mallazzo
Fromkin Brothers
Edison NJ
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[Mary Mallazzo]

First my apologies for the initial incomplete question.  I did not have all the info.
– the pay code is set up to not report as W2 Wages  box is not checked…it is greyed out
– they are included in the W2 wages
– they are included in the YTD Federal Wages
– they are not included in the FUTA wages.

Thank you
?

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Mary Mallazzo
Fromkin Brothers
Edison NJ
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[Thaddeus Suter]

The Pay Code must be Type = Business Expense for the Report  As Wages option.

If so, then the Report As Wages will Not be grayed out.

If the Pay Code is any other Type then the box will be grayed out and the pay is wages – w no option to exclude/include.

So take a look at your Pay Code and make sure the Type is Business Expense

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Thaddeus Suter
Retus, Inc
HELOTES TX
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