Expense reimbursements | Sage HR Knowledge Base

To process reimbursement of expense costs incurred by your employee, select the Expense reimbursements pay component when you process a pay run.

Reimbursements appear in the “other information” section of the pay run and your employee pay statements.

In Canada, most expense reimbursements for business expenses are not considered taxable income.

However, there are exceptions. If you have any questions, contact Canada Revenue Agency (CRA) for advice.

Before you begin

You may have a process for expense submissions and approvals before they can be processed in a pay run.

These processes may be different for each company.

The steps below assume any checks and approvals have been completed.

To add an expense reimbursement to an employee's pay:

Select Pay runs.
Select the pay run you need to process, then Process pay run.
Select the employee you are reimbursing.
Scroll down to the Other amounts section and select Add other amounts.
Select Expense reimbursements, then Add.
You must enter reimbursements as positive amounts. 

You can then process the pay run as normal.

The employee's Net pay will increase by the amount entered into the Expense reimbursement field.

In the next pay run, the expense reimbursement field will return to $0.00

In the period the reimbursement is given the employee pay statement will show the amount they received and the year-to-date amount for the expenses.

📌 Tip: If you do not add an amount to Expense reimbursement, it will not appear on any pay statements.

Pay period 1
Our employee has received an expense reimbursement of $100.

$100 amount is shown in the period column.

$100 is also shown in the Year to date column as this is the first and only expense reimbursement for this employee so far this tax year.

Pay period 2

Our employee did not receive any expense reimbursement this pay period.

$0.00 amount is shown in the period column.

$100 is shown in the Year-to-date column.
This shows the total of the expense reimbursements for this employee so far this tax year.

If your employees view their payslips and tax documents using the Sage HR online view, expense reimbursements no longer show in Earnings.

They're now shown in the Other Information section.

There are lots of pay components already in Sage Business Cloud Payroll which you can use.
If you need to edit or can create new pay components, read our Create and edit pay components in Sage Business Cloud Payroll article.

If you use Accounting integration the appropriate accounts will be available in accounts for you.
Read more about integration between Sage Business Cloud Payroll and Sage Business Cloud Accounting.