Customize an employee's withholding tax rate to withhold other than what the tax table calculates:

1. In Payroll, from Setup, select Employees.
2. Click List, select the employee, and click OK.
3. Press TAB once.
4. Click Taxes, then scroll to select the withholding tax for customization.
5. In the Adj Method, select the adjustment.
6. Press the TAB key once.
   • See What are the different tax adjustment methods? for information about tax adjustment methods.
   • Note: Typically, the method is Addon or *Addon percent to withhold an additional amount. Depending on the adjustment method, enter an amount, rate, or percentage (no more than 7.5 digits).
   • If Adj method is Addon or Replace, enter the flat amount.
   • If Adj method is Addon percent or Replace percent, enter the percentage. For example, enter 1.25% as 1.25).
   • Add on Percent will take the percentage multiplied by the amount of tax which will usually calculate. It isn’t a percentage of the taxable, it’s a percentage of the tax.
   • You may overwrite tax amounts completely by using the Replace or Replace Percent adjustment options.
7. If applicable, type the amount in the Adj Amount box.
8. Click [Accept line].
9. Repeat steps 5 through 7 for each tax ID that needs adjustment.
10. Click Accept table, click Save, and Close.