1. In Configuration, Benefits, create a non-cash benefit.
  2. On the Benefit tab, select the Withholding Setting of Do not withhold tax or report, or Not subject to for all federal, state, and local taxes.
  3. Save and close the Benefit record.
  4. In Records, Employees, open the employee record and select Employee, Add Historic Entry from menu bar.
  5. On the historic entry screen, enter a period ending date and pay date within the calendar year of the W-2.
  6. 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.
  7. In the Payment Details section, highlight Benefits, select the benefit created in step 1, and enter an amount of $0.00.
  8. Highlight Taxes, select the local tax ID, and enter the amount to adjust.
    • Enter a positive number to increase tax withholding
    • Enter a negative number to decrease tax withholding

    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.

  9. Save and close the Historic Entry.
  10. Run the Adjusted Gross Wage Report to verify the change.