Skip to main content
Set up employees and payroll items
Search
Search Accounting CS Support Help and Support.

This article applies to:

  • Product: Accounting CS
  • Subject: Payroll checks,Setup

Set up a mileage reimbursement payroll item

Use the following steps to set up a payroll item that you can use to reimburse mileage.
Depending on the circumstances, a mileage reimbursement isn't taxable as long as it doesn’t exceed the IRS mileage rate (the 2020 rate is 57.5 cents per business mile). If the mileage rate exceeds the IRS rate, the difference is taxable income. Consult the IRS and state/local regulations for further taxable guidance. If a portion of the reimbursement is considered taxable, you’ll need to set up separate payroll items for them.
  1. Select
    Setup
    , then
    Payroll Items
    .
  2. Select the appropriate client and then
    Add
    .
  3. Enter a description for the item and select
    Pay
     in the Type box.
  4. Select the Hourly rate calculation type (this is used as the mileage rate).
    note
    You can enter the mileage reimbursement rate in the Default rate box if issuing the same rate for all employees.
  5. To exclude the pay item from the calculation of accruable benefits and workers' compensation amounts (which is appropriate in most cases), select
    All
     in the Accruable benefits and Workers' compensation dropdown in the Exclusions section.
  6. On the Tax Exemptions tab, select the checkboxes for any taxes from which the reimbursement amount should be excluded.
  7. Select
    Enter
     to save the payroll item.
  8. On the
    Payroll Items
     tab of the
    Employees
     screen, turn on the reimbursement item for employees.

error-icon

Triva isn't available right now.

Check out the support page for our phone number and hours

error-close