Exclusions

If an employee is not subject to a particular federal, state, or local withholding, use the Exclusions dialog box--Employee W/H tab to exclude the withholding from the employee.

To add a record, use the Append button (). To delete a record, use the Delete button ().

Exclusions Dialog Box—Employee W/H Tab

NOTE: If you exclude an employee from a withholding tax using this function they will not get a W-2 printed at the end of the year. To make an employee exempt from withholding taxes, but still print a W-2 for the employee at the end of the year, enter 99 exemptions in the exemptions field on the Federal, State or Local tax tab.

A Description of the tax code is displayed.

If an employer is not subject to a certain federal, state, or local tax for a particular employee, use the Exclusions dialog box--Employer Tax tab to exclude the tax from the employer.

Exclusions dialog box--Employer Tax tab

To exclude the employer from paying State Unemployment Insurance to a particular state, click on the Exclusions button with the state you want the employee exempted, and select the Employer Taxes tab. Select SUI to exempt the employer from paying SUI tax for this employee in this state.