Employees → Taxes → Federal tab

Very uncommon: When an employee should have NO Federal Income Tax withheld from their paycheck, turn the Block Tax slider to Yes, and Save.

Certain employees are exempt from Federal Income Tax due to their filing status or exemptions and qualify to be exempt. The employee will want to reference the W-4 as there are instructions and additional information related to the Exempt status.

💡 Per the W-4 Instructions: “If you claim exemption, you will have no income tax withheld from your paycheck and may owe taxes and penalties when you file your Annual tax return.”

To continue to be exempt in the next year, an employee must give you a new Form W-4 claiming exempt status by February 15 of that year. [See IRS Withholding article]. If the employee fails to submit a W-4 notating they are exempt each year, it is the Employer's responsibility to change this status manually in the payroll system.

Blocking the tax here will only halt the Federal Income Tax from calculating. You must block the tax on each tax tab when applicable.

(Continue in Federal Tax: Specific Federal Income Tax Amount)