The easiest way to pay a one-time reimbursement is through a "negative deduction", a modified post-tax deduction that, unlike a typical deduction, adds an amount to an employee's pay instead of deducting it. While other methods exist to pay a reimbursement, a negative deduction can be manually added during payroll to any employee's check, making reimbursement simple.

Here's how to make a negative deduction (and how to apply it during payroll):

  • Log onto your Fingercheck account and go to the "Setup" tab. From the drop-down menu on the top left of the page, select the "Payroll" menu.

  • Within the "Payroll" menu, go to "Deductions" and click on the blue "Add" button to add a new deduction.

  • For the new deduction, let's assign the Code: "REIMB", and enter "Reimbursement" for the Short Description.

  • You can name the Description anything you want -- for this example, we'll copy our Short Description. The rest will be entered as follows:

    • For Tax Type, select O-Post Tax.

    • For Frequency, select Weekly.

    • then at "Force to Negative Amount", check the box to enable it. Then click "Save."

Now you have created your deduction! The next step is to learn how to add this deduction to payroll to reimburse your employee. Let's start by running the payroll:

  • Within Step 4 of running Payroll, also known as "Payroll Entry," click on the three-line symbol next to the employee's name you would like to reimburse. The symbol should look like this:

    • From the drop-down list of options, click on Edit Check.

  • To enter values into the editable fields, click on the + Add sign next to Deductions. Once you've done that, it's time to enter the deduction type and cost:

    • By Deduction, select "Reimbursement" from the drop-down menu.

    • By Amount, enter the negative cost of the reimbursement.

      • For instance, to pay $100, enter -100.00. This way, the deduction will pay the amount instead of deducting it. Then click Save.

  • Once you click Continue, the Preview Payroll grid will display the negative deduction you entered. Since you selected "Post-Tax," the employee will receive the full amount they are owed to be completely reimbursed.

  • Just click "Next" to approve payroll and the employee will be paid.

If you have any further questions on this subject, you can reach out to our team at 1-800-610-9501, or by using our in-app messaging feature by logging into our secure site and initiating a conversation.

To learn more about our cost-effective and user-friendly cloud-based time and attendance software, check out our website at Interested in our services? Sign up for a 30-day free trial and get started with Fingercheck today.

Did this answer your question?