Add an employee exemption

Before adding an exemption, 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.

1. Click the People tab.
2. Click your employee’s name.
3. Navigate to the Job & Pay tab.
4. Scroll to the bottom of the page and click Add Special Tax Exemption.
   • If the employee already has active exemptions, click edit next to the Exempt Taxes section.
5. Provide the reason for the tax exemption.
6. Choose the date to start new tax exemptions.
   • If you need to backdate any exemptions, please reach out to customer support from the Help section.
7. Select which tax(es) your employee is exempt from. Make sure to confirm any exemptions with your CPA.
8. 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.