Welcome to our guide on managing employee reimbursement expenses through the Sage 300 construction software's payroll module. This tutorial will simplify the process and integrate expense reimbursements into your payroll workflow.

Introduction to Employee Reimbursements

Traditionally, employee reimbursements are processed through accounts payable, requiring the setup of separate vendors and issuing checks independently. However, Sage 300 construction software offers an integrated solution within the payroll module, enabling reimbursements to be issued alongside regular payroll.

Setting Up Reimbursement Pay IDs

To begin, navigate to the payroll module and access the setup pays section. Here, you can create new pay IDs for various types of reimbursements, such as mobile phone allowances. It's crucial to select the reimbursement pay type to ensure these payments are not taxable and do not affect gross pay or tax calculations.

Linking Pay IDs to Employee Files

Once the pay IDs are established, they must be linked to the appropriate employee files. This can be set to occur automatically each pay period, reducing manual entry requirements.

Processing Reimbursements

Reimbursements can be entered during the regular time entry process or imported if needed. The system allows for flat amounts or variable rates depending on the reimbursement type, such as mileage or travel expenses.

Prorating Reimbursements Across Projects

The software can prorate reimbursements based on the hours worked on different projects, ensuring accurate distribution of expenses.

Finalizing the Payroll

After entering all necessary information, process the payroll as usual. The system will generate checks that include both net pay and reimbursements, which can then be printed or distributed electronically.

Posting to General Ledger and Job Cost

Finally, post the payroll checks to update the general ledger and job cost modules. This ensures that all financial records reflect the reimbursements accurately.

Conclusion and Best Practices

By utilizing the payroll module for employee reimbursements in Sage 300, businesses can streamline their accounting processes, reduce administrative workload, and provide timely reimbursements to employees. Always ensure that the reimbursement types are set up correctly to avoid tax implications and maintain accurate financial records.