Please do as follows to insert a compensation for loss of employment (non-taxable) to appear at Item no 5 in the CP22A form:
Go to the Payroll module, click Setup, and select Pay Element Setup.
Click New and enter a Pay Element ID, e.g., Compensation for loss of employment.
Select Allowance and click Next.
Select None of the above and click Next.
Select Standard Allowance and click Next.
Select Free and click Finish.
In the pay element property, move over Compensation Code, Non-Taxable Code, and Tax reporting Code, and click Save.
Go to Pay Record, select the employee, and click Recalculate.
Go to Report, Government Report, and select CP22A.
The amount will be reflected at Item number 5.