The expense reimbursement process allows employers to pay back employees who have spent their own money on business-related expenses. When employees receive an expense reimbursement, typically they would not report such payments as wages or income. These types of reimbursable expenses occur when employees travel for work. But can come from other activities related to their employment; for example, certain purchases of work-related supplies or tools.
The Expense Category feature allows you to create a new expense category and include details such as the tax code, general ledger mapping code, tax rate and external ID. You can also use this feature to edit the information if it changes and delete a record that is no longer required.
Please note that the payroll platform does not include expenses in end-of-year income statements.
The below premise will show you how to establish expense categories from the Payroll Settings page.
The below premise will walk you through how to edit the information if required and how you can restore Delete categories via the Restore Deleted Items feature.
You can delete categories, as long as the data has no association with unfinalised pay runs, recurring employee expenses, or pending or approved employee expense requests. Refer to the Draft Pay Run Audit report if need to know the employees impacted by expense category in unfinalised pay run
Deleted categories will not be available to select when creating new expense requests. However, deleted categories will be available in historical reporting and pay runs, as well as filters where applicable.
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So you have now managed your expense categories and you are now wondering, what next can I do. There are two recommendations I would make on this front and they are:
- Payroll FAQ: How Do I Send a Notification to Employees That We Have Completed Our Single Touch Payroll (STP) Finalisation Event? This FAQ answers a common question we receive about how do I notify my employees that they can access their income statements via the Austraian Tax Office (ATO) online services.
- Payroll platform: Deduction categories This feature allows you to create a new deduction category and specify details such as the category, external ID, payment classification and liability general ledger mapping code.