Add Tax Statuses

Use the Tax Statuses window to enter payroll tax treatments — in other words, the taxes that will apply in various situations.

You can set up tax statuses with many different combinations of taxes that will or won't be withheld.

The options for each tax in a tax treatment are Exempt and Taxable.

Examples of exempt tax status

Exempt from FICA	FICA will not be withheld
Exempt from FICA, Medicare, State	FICA, Medicare, and SUTA will be not withheld
Exempt from FICA, State	FICA and SUTA will not be withheld
Exempt from Nothing	No statutory amounts will be withheld
Exempt from State	SUTA will not be withheld
Exempt from Withholding, FICA, Medicare	Federal W/H, FICA, and Medicare will not be withheld
Exempt from Withholding, FICA, Medicare, State	Federal W/H, FICA, Medicare, and SUTA will not be withheld
Exempt from Withholding, FICA, State	Federal W/H, FICA, and SUTA will not be withheld
Exempt from Withholding, State	Federal W/H, and SUTA will not be withheld

Add tax statuses

Select Finance from the Module pull-down list on the top of the screen.
Select Supporting Data, then Tax Statuses from the Payroll menu, and the Tax Statuses window opens.
Click Add Payroll Tax Status, and the New Tax Status window opens.
Complete the fields as described. All fields are required.

Name: The text entered here will be the description in the windows like Additional Allowances that have a Payroll Tax Treatment field.
Federal Statuses

Withholding: Designate whether pay or benefits with this tax status are exempt from, or subject to, federal withholding.
FICA: Designate whether pay or benefits with this tax status are exempt from, or subject to, FICA.
Medicare: Designate whether pay or benefits with this tax status are exempt from, or subject to, Medicare.

State Statuses > Withholding: Designate whether pay or benefits with this tax status are exempt from, or subject to, state withholding.

Click Create when you've finished entering information, and you're returned to the Tax Statuses window.
Repeat steps 3 - 5 to enter additional tax statuses.