1. Open Quickbooks desktop and click on the Lists menu and select Payroll Item List.
    1. Note: If payroll is not turned on in your Quickbooks file, then you will not see the Payroll Item List selection.
  2. Click on Payroll Item at the bottom of the screen, or simply select Ctrl+N.
  3. Select Custom Setup and click Next.
  4. Select Addition and click Next.
  5. Enter a name for your new Moving Reimbursement payroll item, such as “Reimbursed Moving” and click Next.
  6. Choose the expense account for tracking this expense in your books.
  7. Within the Tax Tracking Type screen, choose “Other Moving Expense” and click Next.
  8. Within the Taxes screen, you should not have to alter anything here.
    1. Please note: As of the time of writing this article, reimbursed moving expenses were indeed considered taxable compensation. Please consult with your C.P.A. for complete information and consultation.
  9. Click Next.
  10. It is recommended that you choose “Neither” on the next screen (Calculate based on quantity) as you can simply choose this item within an employee’s paycheck as you process it and type in the amount to be reimbursed.
  11. Click Next.
  12. It is recommended that you leave this section (Default rate and limit) blank as you can simply choose this item within an employee’s paycheck as you process it and type in the amount to be reimbursed.
  13. Click Finish.
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