You can follow the steps in the knowledgebase entry How to set up cash tips. Obviously you'll pick a different name for the payfield. In step 4 be sure to check the Memo box. That is what designates it as non-cash so it doesn't increase the check amount.. You can stop at step 15 because the rest of the steps explain how to make the fields show as tips on the W-2.

To record the compensation, just put an amount in the new field on the next regular paycheck. The taxes and taxable wages will increase but the net pay will not be increased by the amount of the non-cash compensation. One thing to be aware of is the the "Gross Pay" amount on the payroll register and on the check will not include the non-cash amount. But it does increase taxable wages on payroll tax reports.

You can follow the steps in the knowledgebase entry How to set up cash tips. Obviously you'll pick a different name for the payfield. In step 4 be sure to check the Memo box. That is what designates it as non-cash so it doesn't increase the check amount.. You can stop at step 15 because the rest of the steps explain how to make the fields show as tips on the W-2.

To record the compensation, just put an amount in the new field on the next regular paycheck. The taxes and taxable wages will increase but the net pay will not be increased by the amount of the non-cash compensation. One thing to be aware of is the the "Gross Pay" amount on the payroll register and on the check will not include the non-cash amount. But it does increase taxable wages on payroll tax reports.

Thanks so much! Looks like exactly what I need. Do you know if those amounts will appear in the standard income statement as Wage Expense??

Since this is a memo entry on the paycheck it won't post to any GL account.