We accidentally placed the wrong type (i.e., Allowance) for our Pastors instead of Clergy Housing (Cash). W-2 showed a wrong value. How do we fix allowance type to fix W2

Hi, deregekobre,  

 

You cannot manually edit an employee’s existing pay type for past paychecks. Instead, you must add a new pay type, which will only apply to future paychecks and will not affect any paychecks that have already been processed.

 

Here’s how: 

 

1. Go to Payroll, then Employees.
2. Select the employee's name.
3. Scroll down to Additional pay types.
4. Click Add. Select Clergy Housing (Cash) from the list.
5. Fill in the necessary fields.
6. Click Save.

 

Since you cannot edit an employee's pay type directly, you will need to request a Direct Deposit (DD) Reversal if a previous paycheck is incorrect. This allows you to correct any errors in the paycheck by reversing the payment and issuing the adjusted amount.

 

If Intuit processes your W-2s, contact the Payroll Live Support Team to request a correction. They will file a W-2c with the SSA, provide corrected copies for your employees, and send you an updated W-3 for your records. The support team will also let you know when you and your employees can expect the corrected forms.

 

For W-2s that you personally process, you’ll use payroll reports to fill out the W-2c form.

 

You can refer to this article for additional guidance on correcting employees' payroll forms: Fix an incorrect W-2 and W-3.

 

If you have questions, don't hesitate to reply.