As amounts are only being recorded for W-2 reporting purposes, and no calculation is needed, we can use a Historic Entry to record this. We can use a non-cash benefit to increase taxable wages and also enter medicare and social security taxes in the tax section if needed. The Historic Entry will be based on the amounts provided by the 3rd party.

1. Create a non-cash benefit with the appropriate federal and state tax flags to affect the appropriate W-2 box.
2. Create a new Historic Entry on the employee record using the new non-cash benefit.
3. Enter the amount in the Benefit section that they were paid to increase the taxable wages and if needed, enter the taxes for both Medicare and Social Security in the tax section (for employee w/h and employer)
4. Save and close the Historic Entry

*Historic entries are Do Not Post entries, so it may be necessary to create a journal entry to record FICA expense.