Make an employee tax exempt in QuickBooks Online Payroll

Some employees are exempt from withholding or from one or more payroll taxes.

Follow these steps to make an employee exempt from payroll taxes.

1. Navigate to Payroll and select Employees (Take me there).
2. Select the employee from the list of active employees.
3. Select the edit pencil next to pay.
4. Select the pencil next to STEP 1 in the set up.
5. Scroll down and select the Tax Exemptions dropdown.
6. Select the check box next to Employee Insurance.

The change will apply starting with the employee's next paycheque.