Should I Enter Employee Reimbursements in Lightning Payroll?

Employee reimbursements should not be entered in Lightning Payroll. If added to a pay, they will be reported to the ATO via Single Touch Payroll (STP), which can misstate an employee’s taxable earnings.

Reimbursements are typically handled separately from payroll (for example, via a direct bank transfer or petty cash), so they are not included in STP reporting.

If you want the reimbursement mentioned on the payslip without affecting pay totals or STP, add a payslip note to that pay only:

1. Open the employee’s current pay and click Edit Pay.
2. Go to the Payslip Info tab.
3. Type your message in the Payslip Note field (e.g. “Reimbursement of travel expenses paid separately”).
4. Click Save.

This records the information for the employee while keeping the reimbursement out of payroll figures and STP submissions.