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