Square Payroll Employee Reimbursements
Reimburse employees for expenses they incur on behalf of your business.
How Reimbursements Work
During the process of running payroll or an Off-Cycle Payment, once hours and earnings have been entered, you can add reimbursements to your employee’s pay from the Adjustments page.
Note: Reimbursements aren’t taxed and are currently only available to employees, not contractors.
Reimburse an Employee
To reimburse an employee:
Log in to Staff > Payroll in your online Square Dashboard. Click Run Payroll or New Off-Cycle Payment.
Enter employee hours and any additional pay > Continue.
Click $0.00 under the Reimbursements column > Add One-Time Reimbursement > select or create a reimbursement. Add a description if needed > enter the amount > Save.
After making all necessary adjustments, finish running payroll as usual.
Reimbursements and are not taxed and will be included in the employee’s paycheck.