How to make employee exempt from state tax

How can I make employees exempt from state income tax, but track their gross wages in payroll?

• Munis

• Employee Deductions

• Payroll Processing

Enable the Exempt setting in Employee Deductions when adding the state income tax deduction code:

1. In Employee Deductions: Payroll > Employee Maintenance > Employee Deductions

2. Click Add, enter the Employee and the state deduction code

3. Click the Exempt box and click Accept.

Flagging the Exempt box in Employee Deductions will allow the deduction to generate into payroll without a withholding amount being taken while tracking the gross wages.