Process Employee Reimbursement in Xero

[@Brissieskater1]

Thank you so much for posting this video - occasionally I have to reimburse myself for fuel and tolls, this video is a good refresher course.

[@healthmedicalservices7734]

Thanks - Excellent explanation!

[@aegisbusinessservices6289]

Glad it was helpful!

[@manchovie]

Thanks this is great help. When I pay employee their wages should the reimbursement be included in the amount, and that transaction reconciled along with their wages as "Wages Payable"?

[@adamgrubb5081]

@Nafees Nazeer Did you ever figure it out?

[@aegisbusinessservices6289]

Hi Adam, Yes the reimbursement should be included in the amount paid to the employee but will not be included in the wages payable reconciliation as that side of the transaction will be coded to the relevant expense account.

[@ellie3798]

@@aegisbusinessservices6289 Thank you, so after clearing the suspense against relevant expense account (1k), and lets say pay run includes wages 1k + reimbursement 1k, then when it comes to bank reconciliation paid 2k to that employee or sometimes including more employee, do I reconcile that all 2k into wages account or does it need to be separated again into wages + relevant expense account?

[@aegisbusinessservices6289]

@@ellie3798 When you reconcile your payment from the bank $2K it should all be reconciled to your wages payable account as the actual transaction has already been coded to $1k for the (wages) expense account and $1K for the (reimbursement) relevant expense account. In other words the reconciliation clears the clearing (suspense) account.

[@edisonbuenaventura2339]

What happen to the bill then? How will it be paid?

[@aegisbusinessservices6289]

Hi Edison, the initial expense (bill) was paid by the employee and the reimbursement pays the bill in Xero

[@funkjunky3]

Thanks for this excellent video. Does this process capture the GST portion of the expense so that it is offset on the BAS? Just noticing at the end of the video the credit/debit show up on the account transactions, but there is no GST recorded here.

[@aegisbusinessservices6289]

Yes it does; The GST is recorded when you enter the bill to the correct expense account. (See about 2:25 in the video). Thanks for watching

[@ellie3798]

Thank you so much for helpful video!!!

[@aegisbusinessservices6289]

You are so welcome!

[@jeremys7579]

How would you reimburse a staff member who used their own money for a payment towards a taxi/office supplies etc? Which account would this go into? Thank you

[@aegisbusinessservices6289]

Hi Jeremy, the expense will be coded as per normal (ie as if your business paid it) so if you bought it and would code it to "office expenses" account, then this does not change, however, the difference here is that your business has not yet paid for it but your employee did. This is why it's paid to the clearing account, thus paying for the expense.

[@CatsOwnThis]

Thanks for the video. When payrun is clicked, will the amounts directly deduct from company's bank account and amounts are credited to each employee's bank account? TIA

[@aegisbusinessservices6289]

Hi gMail-fr, The amount is not automatically deducted from your account, after you have completed processing your payroll you have an option to download and ABA file which you will need to upload to your bank, this file will credit each employees bank account.