We reimburse some of our employees for mileage.  We currently have this set up as a non-taxable pay type (piece rate), where we input the miles and then let the system calculate the reimbursement.  However, we recently found out that the system is applying FICA and other benefits based on this reimbursement, when it shouldn't be. 

     How do you have your reimbursements set up?  We would like to still process the reimbursement through payroll, instead of using accounts payable for the reimbursements. 

 Thanks.

 Denise

There are a few options for setting this reimbursement up and not have FICA apply to that pay type.

1. Set the FICA to always debit a single account.  If you want the FICA to go to each employees departments, this will not work.
2. Create a separate Time and Attendance batch for the reimbursement pay.  This will keep it from calculating as part of the regular pay and the FICA will not look at it as part of the employee distribution. 
3. Enter the reimbursement on the same Time and Attendance batch as the other pays, but calculate it separately.  With the first calculation, filter out the reimbursement.  Then calculate again including all and the reimbursements that are left will calculate.  You can still pay them on the same check.
4. Create a separate batch and check for the reimbursement.
5. Create a manual Journal Entry to correct the FICA distribution.

The 3rd option is the best and easiest.  However, which option you choose is an organizational decision.

 I hope this information has been helpful.