Adding Reimbursements and Expenses to Your Timesheet

Who this is for

This feature is specific to Individual accounts and is not yet available to team accounts.

If you have a free or premium Individual account, you will have access to the reimbursements and expenses section when adding or editing entries.

Video guide

In this video, I walk you through how to add reimbursements or expenses to your timesheet.

I explain the difference between reimbursements, which are untaxed, and the other income section, which is taxable.

I also demonstrate how to input these entries, including setting a specific name for the expense and adjusting the tax settings if needed.

Please make sure to utilize this feature for any out-of-pocket expenses you incur while working.

Video Transcript

0:00 Let's look at how we can add in reimbursements or expenses to your timesheet. So, when you are editing the details for an entry, so let's say I punch in, punch out, or when I'm adding a manual entry, you would get to a screen like this.

0:19 I'm going to call this the entry details page. You can also get here from the timesheets if you select a specific row, Same from projects, if you select a specific row.

0:32 So this is your entry detail here. When you're looking at this screen, there's a whole bunch of things you can edit.

0:40 Reimbursements, if you scroll down, you will see we have reimbursements, other income, etc. Uhm, if you have an expense or reimbursement, what does that mean?

0:54 It means that, let's say, you, uhm, are doing a job and as part of doing the actual work, you, from your own pocket, paid out, you know, a hundred bucks.

1:07 And you need to be reimbursed for that. So that's not that $100 that you're going to get. It's not part of your salary.

1:15 It's just you're being reimbursed for an expense. What you can do here is you can do this. You can just add that in as reimbursement.

1:24 Let's say I have an entry. Let's just set this up so it's a little bit clearer. So we've got, we started at 10 a.m., uh, till 3.30, so some hours of work, but we also have some reimbursements.

1:36 I can change the name of this to be something a bit more specific, just so that it's easier to work with.

1:45 So let's write this expense. And this is basically it, you would just add that in, save it, and it would show up, it would add that amount to your total amount.

1:59 So what is the difference between real estate reimbursements and this other income section? So it's, the difference is just that reimbursements are untaxed, whereas other income would be taxable.

2:09 And that is related to this tax and withholding section that we have here. Most people don't use this section, because tax is a little bit more complex than just having a percentage applied to each entry.

2:20 But if you're using the tax section, let's say I'm saying, hey, I pay 20% taxes and I want taxes applied to this entry.

2:33 And just to make it clearer for you guys, let's say we set the hourly rate for this to zero. The reimbursements right now, the $100 up here is all from the reimbursement, right?

2:46 Because we set the hourly rate to zero. And the only reason we have $100, that's from the reimbursements. Taxes do not apply to reimbursements, right?

2:56 It's not your income. You're just being repaid for something that you paid out. But other income, let's say it's for tips, you're getting tips, other income is income, so you're going to be taxed for that.

3:08 Let's say you got $100 in tips. Now, as you can see, instead of this adding up to $200, the tax was deducted from it.

3:20 And let's just get rid of the reimbursement just to make that a little bit clearer. So we have zero for expense, $100 for tips, but we've got this 20% tax applied.

3:32 And so only $80 is added at the top to the net. And that's basically it. You can go into any entry you have, uh, and add in, uh, reimbursements or expenses or you know additional income.

3:51 Although for additional income you may also just want to add a flat fee entry. It's a little bit cleaner if you do it that way.