Are reimbursements added to 7shifts Payroll taxed?

Question

Are reimbursements in 7shifts Payroll subject to tax?

Answer

No, reimbursements in 7shifts Payroll are classified as non-taxable and are not subject to tax withholding. Because reimbursements are non-taxable, they do not impact the tax calculations for an employee's paycheck in 7shifts Payroll.

Why This Happens

Reimbursements in 7shifts Payroll are designed for repayment of business expenses incurred by employees. Since these payments are not considered earned income or wages, 7shifts Payroll does not apply federal or state tax withholdings to reimbursement amounts.

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