Another option for reimbursing an employee for reimbursable business expenses is to set them up as a Vendor (in addition to having them entered as an employee). This way QuickBooks will not take out payroll taxes from the reimbursement. Their name can not be exactly the same. If you are not using expense reports with back-up, you may need to list them as a 1099 Vendor. Check with your accountant and/or attorney to confirm.
