Year End: Auto Allowance

How to set up an Auto Allowance earning code

Typically used when an employee is using their own vehicle for work purposes.

Navigate to: Company Settings > Payroll Setup > Earning Codes

If the code isn’t already set up on the company, click "Add New Earning Code" in the upper right corner.

In the Roll up Earning box, select “Regular”. You should now see this box:

Select "OK"

Rename the earning code. The W2 Box Type should have the following setting:

Click "Save"

Each state’s income tax, local tax, and worker’s compensation taxation varies – get the taxability from the client.

Purpose: This article explains how to add an earning code for auto allowance to report accurately on year-end form W2