Set an Employee as Exempt from Federal Withholding (US)

(United States) You can set applicable employees as exempt from Federal Tax Withholding in PR Employees.

To set an employee as exempt for Federal tax withholding in PR Employees:
  1. In the Employee field, enter the employee you are setting as exempt.
  2. Select the Add'l Info tab.
  3. Select the Federal Tax Exempt checkbox.
  4. Select Save.
When processing payroll, the system calculates a zero amount for Federal withholding for the specified employee, regardless of whether you have set up an override calculation for the Federal Withholding deduction code in PR Employee Dedns/Liabs.