Yes! Use the Reimbursement earnings type to reimburse workers for business-related expenses, such as travel costs. The default Reimbursement type in Zenefits is non-taxable.
Withholding for Reimbursements
Reimbursements are not considered income, and are non-taxable, so long as three conditions are met:
- The reimbursement is for an expense incurred while performing work for the business.
- Expenses are reported to the employer within a reasonable amount of time, usually prior the reimbursement.
- Any portion of the reimbursement in excess of actual costs is returned within a reasonable amount of time.