Manage payroll reimbursements in Reckon One

Learn how to create and manage reimbursements in Reckon One, so you can pay employees back for work expenses in a pay run.

Overview

A reimbursement pays an employee back for the exact cost of a work expense they've already paid, like a taxi fare or equipment hire, usually accompanied by a receipt or other proof of the expense.

Reimbursements are added to an employee's pay after tax, so they only change their net pay. They aren't reported to the Australian Tax Office (ATO) through Single Touch Payroll (STP), so they won't appear on the employee's income statement.

If you're paying a set amount that isn't based on a receipt, like a meal allowance or cents per kilometre for using their own car, create an allowance pay item instead. Learn how allowances are reported through STP.

Add a reimbursement item

To add a reimbursement item:

1. Go to Payroll, Payroll settings, then select Pay items.
2. Select the Reimbursement tab. Displayed will be a list of a previously created reimbursement items.
3. Select Create pay item and then Reimbursements.
4. Enter the Reimbursement item name, Description (optional) if applicable, and select the relevant Account from the drop down list. This is the expense account that the value of the pay item is to be allocated to.  It will default to the expense account default in Payroll > General settings (if set up). Tax will be charged at the rate on the tax group assigned to the account selected.
5. Select Create.

Disable a reimbursement item

When a Reimbursement item has been disabled, the status is updated to Inactive and the pay item will not be available for selection in the pay run.

To disable a reimbursement item:

1. Go to Payroll, Payroll settings, then select Pay items.
2. Select the Reimbursement tab.
3. Select the Action menu (the 3 dots) against the Reimbursement item you wish to disable.

1. Select Disable and confirm by selecting Yes, disable.
2. The Reimbursement item will show the status as Inactive.

Reactivate a reimbursement item

To reactivate a Reimbursement item:

1. Go to Payroll, Payroll settings, then select Pay items.
2. Select the Reimbursement tab.
3. Select the Action menu (the 3 dots) against the Reimbursement item you wish to activate.

1. Select Reactivate and confirm by selecting Yes, reactivate.
2. The Reimbursement item will show the status as Active.

Delete a reimbursement item

To delete a Reimbursement item:

1. Go to Payroll, Payroll settings, then select Pay items.
2. Select Reimbursement tab.
3. Select the Action menu (the 3 dots) against the Reimbursement item you wish to delete.

1. Select Delete and confirm by selecting Yes, delete.
2. The Reimbursement item will be no longer be displayed.

Read more

• Learn how to add a reimbursement item to a pay run