1099 payment exclusions

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Hi Everyone,

My team works in higher education at a private college, where we process a high volume of reimbursements for students, faculty, staff, and guests.

Adding guest users directly to our Ramp portal to issue reimbursements was not ideal for us (though we still use it for employees). We recently created a custom field in Bill Pay asking, “Is this a reimbursement?” with a Yes/No dropdown menu. This approach allows us to send payments to guest users who do not wish to sign up for a Ramp account or provide ACH information.

However, we are now trying to determine how to exclude payments marked as “Yes, this is a reimbursement” from our year-end 1099 reporting.

Does anyone have a recommended workflow or solution for filtering these out? If not, could this feature be built out? Or better yet, could the reimbursement options be updated so we can issue reimbursements to non-Ramp users and include check payments as an available option outside of Bill Pay?

I’d also be curious to hear how other people are solving reimbursements. For us, doing so outside of Ramp is a bit problematic. We are also exploring virtual cards, but that hasn’t been the most ideal either. Currently we are sort of doing a hybrid approach between registered user reimbursements, Bill pay reimbursements, and virtual Ramp cards.

Thanks so much!
Keith

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One workaround would be to use a Category(Account) for Reimbursements only that is then excluded, that is mostly how it works in QuickBooks - it just has to go to a category that is not included in what is subject to 1099 reporting

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Thanks for the recommendation Stuart!

Our team previously discussed this is a potential solution. Our Controller brought to light however that we still need all of our reimbursements mapped to specific GL accounts, so we can track spending across various categories such as: Travel, Hospitality, Supplies, etc…

If we created a GL specific for reimbursements, we would lose the ability to easily track that spending as they would all funnel into the same GL.

Is there a way in Ramp to assign specific fields to a type of spend and then exclude just that type of spend from 1099s?

For example, is it possible to create a filter that says: If “Is this a Reimbursement?” is “Yes”, then spend type equals reimbursements. If spend type is reimbursement, exclude from 1099s.