Pre-appointment expense reimbursement is not taxable and should not appear on the STP submission. Our suggestion for entering and distributing pre-appointment expense reimbursement is as follows:
- Create a priority creditor being the employee and enter the pre appt expense reimbursement as wages. This will result in 2 records for the employee. You can adjust the F5602/5603 Est number of creditors during the F5602/5603 production wizard.
2. Enter the pre appt expense reimbursement as wages.
3. Then you can pay the reimbursements as a separate distribution. There will be no tax calculated because the creditor is not setup as an employee. And the transaction will not appear on the STP2 submission.