How do I record a payment in 7shifts Payroll without applying tax deductions?

Updated January 13, 2026 19:31

Question

How can I record a non-taxable payment in 7shifts Payroll?

Answer

⚠️ Important: Do not use the Reimbursements field to pay employee bonuses. Bonuses are legally considered taxable income and should be entered into the Bonus field to ensure proper tax compliance.

To record a payment that is not subject to tax withholding in 7shifts Payroll, you must enter the amount as a reimbursement during the payroll run process. 7shifts Payroll classifies reimbursements as non-taxable, meaning no federal, state, or local taxes will be withheld from the amount.

To enter a non-taxable payment:

Begin your payroll run in the 7shifts Payroll tab.
Locate the employee receiving the payment.
Enter the amount into the Reimbursements field.

Note: We recommend consulting with a tax or accounting professional if you are unsure whether a specific payment qualifies as a non-taxable reimbursement.

Running 7shifts Payroll

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