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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:

  1. Log in to Staff > Payroll in your online Square Dashboard. Click Run Payroll or New Off-Cycle Payment.

  2. Enter employee hours and any additional pay > Continue.

  3. 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.

  4. After making all necessary adjustments, finish running payroll as usual.

Reimbursements and are not taxed and will be included in the employee’s paycheck.

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