Can I add a pastor housing line to the EFW2 format for state filing

If you're required to add your pastor to the Electronic Form W-2 (EFW2), you can add them manually, GCBC_1991. However, this will depend on the IRS guidelines. I'll share further details regarding this.

Clergy housing allowance set up in QuickBooks with a Tax Tracking Type of Other or None to report to Box 14 won't generate a W-2 for the employee at the end of the year if there aren't any wages reported for the employee.

Thus, please visit the IRS website for more information about clergy wages and housing. I also recommended consulting an accountant if you wish to add the housing allowance manually to ensure accurate filings.

If you want to set up a clergy housing, please follow these steps:

1. Go to Lists, click the Payroll Item List, choose Payroll Item, and hit New.
2. Select Custom Setup and click Next.
3. Under Payroll Item Type, choose Addition and click Next.
4. Enter a name for the item and hit Next.
5. Choose the Expense account, then click Next.
6. Select a Tax Tracking Type, then click Next. 
7. The Taxes default window is based on the Tax Tracking Type you selected, click Next if you didn't change anything.
8. For Calculate Based on Quantity, choose Neither and click Next.
9. For Gross vs. Net, choose Gross and click Next.
10. Add the rate and limit or leave the Default Rate and Limit fields blank, then select Finish.

For more information, please visit this article and scroll down to the bottom part to see the different Tax Tracking Types and how you can set it up: Set up clergy on payroll.

Additionally, you can view this resource to learn more about when and how to submit your W-2 and W-3 forms to Federal and state agencies: File your W-2 and W-3 forms.

Please let me know if you have additional questions regarding clergy, GCBC_1991. I'll be here to lend a hand.