Employee claimed exempt and taxes still withheld

I have three employee's who filed a new W-4 as exempt, but federal taxes were still withheld for them.

• Munis
• Employee Deductions

Three employees had the 2020 or later W-4 setting enabled in Employee Deductions for their federal withholding, however the exempt setting was not enabled.

1. Access Employee Deductions: Payroll > Employee Maintenance > Employee Deductions
2. Search on the employee and the federal deduction
3. Click Update enable the Exempt checkbox
4. Click Accept

With the exempt setting enabled, gross wages for FIT will still be tracked, however no withholding will be taken.