[BCB:5:Third-party support:ECB] Information Use adjustment methods to specify whether a tax calculation needs adjustment for an employee. Select this setting in Payroll, Setup, Employees, Taxes. If an employee selects exempt on the W-4 form, verify with them if they need No Tax or Exempt. Typically, you use the No Tax adjustment method. If an employee had earnings calculate with the incorrect setting, you’ll need to run the Recalculate Subject-to tool. See the Related Solutions below for more information. No Tax Example: Use this method for a student who doesn’t earn enough to pay taxes. - Instead of calculating the tax specified in Setup, Taxes, Tax Rates, Sage doesn't calculate or withhold a tax.
- Earnings accumulate in the taxable and subject-to columns, but no taxes accumulate.
- Tax information still appears on the W-2 form or T4 form.
Exempt Example: Use this option for a member of the clergy. - Employee is exempt from the tax.
- No earnings accumulate in the taxable and subject-to columns, and no taxes accumulate.
- Tax information doesn’t appear on the W-2 form for exempt employees.
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