A reimbursement is a repayment of an expense.
For example:
- Hank the Handyman bought me a pizza. I gave him $10 to pay him back.
- My employee ran to the office supply store to buy some toner on their way into the office yesterday morning. They gave me the receipt and I gave them money out of petty cash to cover the cost.
Reimbursements are for W-2 employees only. Reimbursements should not be considered when calculating 1099 batch totals. See Form 2106 , Form W-2, or discuss with your tax advisor. (Reimbursements are a complex topic.)
If you e-file a 1099 for a vendor through Buildium, the total should be the gross amount paid during the tax year. If you feel there was an amount that reimbursed the vendor, the IRS expects the vendor to include that amount as income (from the 1099) and also deduct that money as an expense on another tax form, such as the Schedule C or similar.
If your vendor did not track their expenses over the year, you can provide a vendor ledger report or the attachments tied to checks or bills. It is likely that they will need to provide their own records as well, depending on the nature of the reimbursement.
The vendor ledger report shows the line by line details of checks and bills, making it simple for your vendors to see what was included. You can now include inactive properties when running the report to ensure all income for the year is visible in the report.
If you have W-2 employees, Buildium does not have the ability to mark transactions as reimbursements at the present time. You'll will need to manually calculate the reimbursed totals. The vendor ledger report will assist you. It shows a line by line detail of checks and bills.
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