Employees → Taxes → Tax Exemptions tab

💡 Tax Exemptions are VERY rare.  Coding an employee exempt from taxes can cause an employee to be under-withheld, which could result in client penalties. Whenever an employee claims exemption from any tax, it is a best practice to have this request in writing. Contact your accountant or CPA for any employee taxation questions and your Payroll Support Team to discuss the verdict and to confirm how to code properly.

Tax Exemption Status Type: Situations where an employee is truly exempt from certain taxes.

(Ex. Employee has an F1 Student Visa), discuss the employee with your accountant to determine an employee’s exemption status.

Contact your Payroll Support Team if you have questions regarding the options in this menu.