QuickBooks Quik Tip for the Day – Car Allowance

Posted by on Mar 2, 2011 in QuickBooks Tips | 0 comments

Yes you can setup a Payroll Item that tracks car allowances, as this a taxable benefit for most employees. Here’s some quick steps on how to do this.

From your Menu Bar choose List/Payroll Item List right click on your mouse New/Addition/Next.

Name field – Car Allowance/Next. For the Expense Account, set up a New account to make it easier to track, we will call it Employees Car Allowance, and make it a subaccount of Payroll Expenses.

Next/ROE Tracking – accept defaults/Tax Tracking Type – Box 14A/Next/Taxes – accept defaults/Next/Calculate Based on Quantity – accept defaults/Next.

For the Default rate and limit –  use a figure that will be the default amount per pay period, e.g. 125.00. If there is an upper limit then use the second box and if it is an annual limit, then check the This is an annual limit box.

Finish will save this Payroll Item for Car Allowance.

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