How do I create per diem payments in Zenefits Payroll?
Here are some general instructions for creating a per diem payment in Zenefits Payroll.
The payment will need to be added, potentially, in two separate steps. Zenefits Payroll will not automatically determine which portion of the per diem payment should be taxed and which shouldn't so this will need to be determined offline.
For a list of what per diem payments are taxable, check out #6 in the IRS FAQ page here. For a list of per diem rates (US and foreign), click here.
For the taxable portion, create a Custom Earnings Type
1. In the Payroll app, choose Settings.
2. Click Pay Types.
3. In the Earnings table, click +Add Earnings.
4. Give the entry a name, e.g. Per Diem Payment.
5. In the Earnings Category list, choose Regular Earnings so the amount is taxed normally.
6. Click Create.
For the non-taxable portion, create a Custom Reimbursement Type
1. In the Payroll app, choose Settings.
2. Click Pay Types.
3. In the Earnings table, click +Add Earnings.
4. Give the reimbursement a name, e.g., Airfare Reimbursement.
5. In the Earnings Category list, choose Reimbursement.
6. Click Create.
The custom types will now show up in the +Add Regular Earnings and +Add Reimbursement list in employee’s pay stubs and pay templates.