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 can manually add a new pay type for an employee, but it will only apply to future paychecks and won't impact past ones.

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.

Please note that this change applies only to future paychecks. If a previous paycheck is incorrect, you’ll need to request a Direct Deposit (DD) reversal to recover the funds and issue a corrected paycheck.

For guidance and information on fixing your W-2 form, refer to this article: Fix an incorrect W-2 and W-3.

If you have questions, we're here to assist you.