Create a Cash-Benefit to use as the payment method for the employee.
  1. In Configuration, benefits, create a cash benefit
  2. On the Benefit tab, mark the Include amounts for this benefit in W-2 Box checkbox, and select the appropriate W-2 box number.
    Note: If you select Box 12, you must also select a Code from the drop-down list.
  3. Set up any sort of Federal, State or Local tax settings appropriately.
  4. Save and close the Benefit record.
  5. In Records, Employees, open the employee record.
  6. Go to the Compensations/Deductions tab
  7. Add the benefit to the employees record, you can now use this benefit as their standard pay
If you simply need to record the item instead of using it as a pay type, you can add it as a historic entry.