1. Reimbursement That Doesn't Affect Gross Pay or T4s: You can set up a reimbursement type in the payroll settings that won't affect the employee's T4 or gross pay. This is not taxed and appears in the 'Other Amounts' section of the paycheque module.

2. Allowance That Affects Gross Pay and T4s: If you want the reimbursement to affect the employee's gross pay and be reflected on their T4, you'll need to set it up differently. This type of allowance will affect the bank account and is subject to tax deductions depending on the type of expense being reimbursed.

For detailed instructions on how to set up each scenario, including the specific steps to create a new income type for reimbursements or allowances and how to link it to an expense account, please refer to the full article here: How to create an employee allowance or different kind of reimbursement.

This guide will also help you understand the tax implications and how to ensure these payments are processed correctly in your payroll system.

Hope this helps, and please let us know if you have any further questions!

Warm Regards,
Erzsi