Certain scenarios require a tax exemption. To mark a certain tax exempt, follow these steps.
First determine who is getting taxed
If it's an employer tax
Go to edit your company. All applicable federal, state and local taxes are listed in the Employer Taxes page. To turn off a tax, toggle the "Exempt from..." switch to be ON.
If it's an employee tax
Go to edit your employee. Determine if it's a federal tax OR a state tax.
Federal taxes
Federal taxes are listed in the "Federal Taxes" page. At the bottom you can toggle on/off federal employee taxes:
Federal income tax
Medicare
Social Security
To stop calculating a tax, toggle the "Exempt from..." checkbox to be ON.
State and local taxes
State taxes are listed in the "State Taxes" page. Find the tax you want to stop calculating and toggle the "Exempt from..." switch to be ON.
Benefits
Benefit taxes are determined based on the benefit type selected. These settings can't be customized.
After you save your changes, the next payroll run will not calculate these taxes. Happy calculating!