Loan Payments on W-2 as Roth

Hi, 

We have an awful client that needs to hire a payroll service.  This is the 4th year in a row where she's screwed everything up.  The latest is there looked like missing Roth deposits for the last few payrolls in 2025.  It was weird though because each deposit made was missing the same exact # - $110.09.  Then I search in the file and there's a listing of payroll contributions and typed next to the Roth it says "loan payments".  However, they were reported on the W-2 as Roth.  Since they are both after tax, is it ok to leave as loan payments and just reduce that amount on the admin reports.  They obviously won't tie to the payroll/W-2.  I just wasn't sure how the Roth affects the 1040 (if it does at all). 

Thanks, 

Since the facts about what happened are known and relatively recent, I recommend working with the client to document everything and to make sure that at least the plan accounting and reporting (5500) is correct, and preferably to issue corrected W-2.  (You are correct that this should no affect the individual's tax return.)  Otherwise, there may be unintended consequences that emerge after the passage of time.  For example, should this participant in the future use Roth features, the participant may believe the 5 year period to make earnings on Roth accounts nontaxable started in 2025.  Or, the participant (or payroll) may count up the number of loan repayments and exclude the mislabeled amounts, and then conclude that the loan was not paid in full.  An ounce of prevention...

Were the amounts applied correctly as loan repayments in his account?