Add an employee tax exemption
Your employee may be exempt from a certain tax, and is therefore not required by law to contribute to this tax in each payroll. We highly recommend that you consult with a CPA or other tax professional to confirm that your employee is tax exempt before changing the tax status for your employee.
To add a tax exemption to your employee, follow the below steps.
- Click the People tab.
- Click your employee’s name.
- Navigate to the Job & Pay tab.
- Under Federal Taxes, click Add Special Tax Exemption. If the employee already has active exemptions, click edit next to the Exempt Taxes section.
- Click Schedule an Exemption.
- Enter the Effective Date.
- Next to the tax, select Exempt.
- Click Save.
We will not withhold tax amounts for your employee in upcoming payrolls starting on the selected effective date.
Note: Exemptions may negate wages from being reported on applicable forms.