How do I make a Pay or a Deduction tax exempt?
Description

Important consideration:

Changing the exemption status when an item is already in use can affect other calculations. You may need to set up a new Pay or Deduction instead to separate them for reporting. Discuss with your tax professional if you’re unsure of the correct process for your needs.

Cause
Resolution
[BCB:5:Third-party support:ECB]


  1. Go to Payroll, Setup, Pays or Deductions.
  2. Select the pay or deduction.
    • Pays: Select the applicable Employee taxes exempt and Employer taxes exempt boxes
    • Deductions: Select the applicable Before employee taxes and Before employer taxes boxes
  3. Click Save and Close.
Steps to duplicate
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