W-2-Box-12-Code-L-(Reimbursed-Employee-Expense)-QuickBooks

Query: We can’t find Code L under box 12 (for W-2), will appreciate your help. thank you, ..QuickBooks pro desktop 2018.

W 2 Box 12 Code L Information in Detail

Box 12 of Form W2 with code L reports substantiated employee business expense reimbursements. If you don’t use this expense, the unused amount would be taxed as wages. L – Employee business expense reimbursements (nontaxable and not included in Box 1). You can’t deduct any of the expenses related to this reimbursement.
  • Cash Fringe Benefits: Non-taxable Per Diem
  • Increases Net Pay? Yes
  • Information Related To: Reported on form W-2 Box 12 Code L

A reimbursement is considered as the nontaxable payments to a worker to reimburse company related expenses. It has compensated out-of-pocket to their Employee from time to time. The business owner is agreed to reimburse their employees, such as accommodation or mileage costs for attending company conferences and meetings. These type reimbursements are generally nontaxable.

The company can reimburse their employees’ expenses by generating a QuickBooks Payroll item as well as they can track all the expense payments with the help of company expense account. To get more information regarding this, the user has to contact Fastfix247 Tech Support team for further assistance.

How can I Reimburse Employee Expense in QuickBooks?

The user can add numerous reimbursement pay option and have the default name they provide or offer them the exclusive name. When they edit or add their other employees, the customer pay type will available.

  • For an employee to add the Reimbursement pay type
  • Go into the left navigation bar, tick on the Employees.
  • Tick on the employee’s name, and click on Edit employee
  • Tick on Add additional pay types and choose the other type or tick on the pencil icon
  • Choose the checkbox of Reimbursement and if the user does not get Additional pay types list, need to tick on more pay types and choose it from that place.
  • If the user wants to fixes reimbursed amount payday, they can add the amount in the Recurring Box.
  • Tick on Done

How can I Reimburse Employee Expense in QuickBooks?

The user can follow the below steps to reimburse business expenses. Here the user has two options: Pay their employee later or Pay their employee now.

For future payment to record the expense:

The user can keep all the expense into journal record and they can pay their employee later as per their scheduled timetable.

  • Choose the (+) plus sign on the top and choose the Journal Entry.
  • Enter the all transaction record.
  • Enter the first distribution line into this column.
  • For the tracking of employee, reimbursements go into Account If the user not gets this option, write Employee reimbursement and push Enter button.
  • Go into Account and select the account types
  • Other Recent Liabilities
  • Other Recent liability
  • In Credit Option: employee owed Amount
  • Name (Column): Name of Employee

For these:

  • Account (Column): The purchase amount from the employee.
  • Debit: Total purchase amount
  • Name: The name of the customer or they can leave this column as empty
  • Choose

Check how much they owe their employee:

  • For the check this, the user needs to run Account Transaction Detail report
  • Select the Reports and look for Account Transaction Details, choose the Customize
  • Now go into a General segment, check Transaction Date series comprises the journal entries they have created above.
  • In the Columns / Rows segment, search Group By field and choose the Employee.
  • Select the Change Columns and choose the Employee
  • Go into Filter segment, search for Distribution Account field.
  • Choose their Employee Reimbursement account liability.
  • Go into Employee segment, choose the employee’s name
  • Choose the Run Report

To pay the employee now:

  • Choose the (+) Plus sign icon on the top, choose Expense or Check to payment record to the worker
  • Select a Payee: The Worker.
  • Cash account or Bank account: Select the account to reimburse to employee from cash or bank account.
  • Quantity: Here enter the total owed amount to their workers.
  • Account (column): Select the expense from the dropdown or write Employee reimbursement and push Enter.
  • Customer: (Non-compulsory) chooses the customer and tracks the expense for precise customers or customer.
  • Billable: (Non-compulsory) choose the BILLABLE box if the user wants to offset the expense as an invoice statement for future reference or proof.
  • Select Print and Save.

Though we have explored about Reimbursed Employee Expense in QuickBooks, however, if the user requires any extra support, call our FastFix247 QuickBooks tech support team.

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