How to set up employee to be exempt from FICA and Medicare

I have an employee who is exempt from paying toward FICA and Medicare. What is the best way to set this up?

• Payroll
• Deduction and Benefit Master
• Pay Master
• Employee Deductions
• Payroll Start and Status

Exempt checkbox cannot be enabled for FICA or Medicare deductions. The employee must be set up with pays that are excluded from those deduction codes. 

Recommended to set up in Test/Train first.

1. Navigate to Payroll>Payroll Setup>Pay Master.
2. Click Add to create new Pay Code.
   1. If you would like to copy off an existing Pay Code, Search for the Pay Code and click Copy Pay.
3. Update fields as necessary and click Accept.
4. Navigate to Payroll>Payroll Administration>Payroll Exceptions (or Payroll>Payroll Setup>Deduction and Benefit Master and click Exceptions in tool bar).
5. Search for FICA or Medicare deduction code and Processing Code 1: All Pay Types Included Except.
6. Click Accept.
7. Click Update.
8. Tab down until you reach a blank field.
9. Enter the newly created Pay Code in the From and To fields.
10. Click Accept.

If changes are made in Deduction and Benefit Master to exceptions while a payroll warrant is being worked on, the deductions will need to be either deleted and re-added in payroll or recalculated. Use Deduction Gross will not Recalculate in Payroll after Changes made in Deduction and Benefit Master.