Before you record your company's first reimbursement batch, you need to create a non-taxable reimbursement payroll line item. Reimbursements qualified through your Zane plan may be given as tax-free additions through payroll, similar to mileage and travel expense reimbursements. The reimbursement amounts are not subject to payroll taxes and do not increase an employee’s taxable salary on their W-2.
The non-taxable payroll line item can be described as follows:
- Non-coded, miscellaneous
- Addition to net income
- No tax tracking
You may title the payroll line item as desired. Below are some suggestions, based on your Zane plan.
Tip: If you use QuickBooks or Intuit online for payroll, the following article from Intuit’s help center may provide additional help: Create a non-taxable reimbursement payroll item.
- ZaneHealth: HRP, ZaneHealth, health benefits, health reimbursements, reimbursements
- ZaneHRA: HRA, ZaneHRA, health benefits, health reimbursements, reimbursements
- GroupHRA: HRA, GroupHRA, health benefits, health reimbursements, reimbursements
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