How do you process an expense reimbursement?

[redrivermonkey]

I read about how to handle a vehicle expense reimbursement by entering it as a negative deduction. However, when I do that it adds that amount to Medicare wages on Form 941. It does not seem to make any difference that the boxes on the deductions page are checked to exclude this reimbursement from FIT & SS & Medicare Tax. Am I missing something here?

[Paul Mayer]

That's the problem, you cannot mark a "negative" deduction as non-taxable.

If do just like we show in our sample company file setting it by just typing in a deduction name and don't touch anything else, it will work as described.