Follow these steps to setup tax-free reimbursements through Paycom for your Employees:
First, you will need to create and complete your data set. You can download your most recent reimbursement statement from the 'Reimbursements' Section of your admin portal. Then, click ‘Start Payroll’ and complete the next 5 steps to get the payroll started.
Once the payroll is created, you will be brought to a tab that says ‘Payroll Data Input.’ This is the first step to submitting payroll.
On this next step, click on an Employee’s name who is receiving the reimbursement, then scroll down to the deduction or reimbursement section and click ‘Add.’
The deduction to use for Health Reimbursement Arrangements will be HRI - Employer Health Insurance Reimbursement. For this amount, you will need to declare a negative number in order for it to reimburse the employee. For example, if the Employee is receiving a $100 reimbursement, the amount will show as -100.
Once the amounts are attached to that deduction, scroll down to click ‘update.’ The reimbursement will now be attached to the employee's paycheck. You can move on and repeat these steps for each eligible employee.
*Please note that if these are going to be one time reimbursements they will have to be added during the payroll process.