Set Tax Exemptions for Employees Who Have a Taxable Wage

Use this method to set tax exemptions for employees who are exempt from one or more taxes but still have a taxable wage.

If you need to set tax exemptions for an employee who is not a citizen of the United States, has no taxable wage, and is truly exempt from all taxes, e.g., an employee who has an F-1 Visa or a Green Card.

• Setting Tax Exemptions for Employees Who Are Non-Citizens

Set Tax Exemptions for Employees Who Have a Taxable Wage

This method of configuring tax exemptions is used for employees who are exempt from taxes but still have a taxable wage.

1. From the Main Menu, click Employee.
   
   
2. Search for the employee that has tax exemptions.
   
   
3. Double-click on the employee's record to open their Summary page
   • If a Data Requirement Message (DRM) displays, click OK.
     
     
4. Navigate to Employee > Payroll > Tax.
   
   
5. Click on the View drop-down menu.
   
   
   
   
6. Select All Taxes.
   
   
7. Click in the Exemptions column of the first tax to be set as exempt.
   
   
   
   
8. Replace the current value with “999”.

Replace the value in the Exemptions column with "999" for each of the taxes the employee is exempt from.

Using Dependents In Place Of Exemptions

If the employee resides or works in a state that uses dependents instead of exemptions to indicate tax exemption, the value of “999” must be entered in the Dependents column instead.

1. Click the Field Chooser button in the upper left corner of the grid.
   
   
   
   
2. Add a check next to Dependents.
   
   
   
   
3. Close the Field Chooser window.

Replace the value in the Dependents column with "999" for each of the taxes the employee is exempt from.

Exemption from US Federal Tax Withholding 

1. From the Main Menu, click Employee.
   
   
2. Search for the employee that has tax exemptions.
   
   
3. Double-click on the employee's record to open their Summary page
   • If a Data Requirement Message (DRM) displays, click OK.
     
     
4. Navigate to Employee > Payroll > Tax > US Federal Tax (select Create Default Taxes if no tax line appears).
   
   
    
5. Click in the Deductions and enter "999999" into column of the tax line to be set as exempt & select Save.