- In Configuration, Benefits, create a non-cash benefit.
- On the Benefit tab, select Report earnings only for all local taxes from the Withholding Setting drop-down list for Local taxes.
- Select Do not withhold tax or report, or Not subject to for all other federal and state taxes.
- Save and close the Benefit record.
- In Records, Employees, open the employee record and select Employee, Add Historic Entry from menu bar.
- On the Historic Entry screen, enter a period ending date and pay date within the calendar year of the W-2.
- Select the bank account and payment method, and enter the check number.
Note: The bank information is needed to create a Do Not Post transaction to record the adjustment on the employee Activity tab; the transaction is not recorded in the bank register. Because the historic entry transaction has a status of Do Not Post, it will not affect General Ledger accounts.
- In the Payment Details section, highlight Benefits.
- Select the benefit created in step 1 and enter the amount to adjust.
- Enter a positive number to increase taxable wages
- Enter a negative number to decrease taxable wages
For example, if the current box amount is $500 and it should be $600, you would enter $100 in the Amount field or if the current box amount is $600 and it should be $500, you would enter ($100) in the Amount field.
- Save and close the Historic Entry.
- Run the Adjusted Gross Wage Report to verify the change.