Make an employee tax exempt in QuickBooks Desktop Payroll

Follow these steps to make an employee tax-exempt in QuickBooks Desktop Payroll. If you are using QuickBooks Online Payroll, please see this article instead.

1. Navigate to the Employees menu and select Employee Centre.
2. Select the employee you are exempting from taxes.
3. Select the Payroll Info tab.
4. Select Taxes and TD1.
5. Uncheck the checkboxes where the employee needs to be exempted.
6. Select OK to save your changes.

Once you've entered the tax exemption information for the employee, QuickBooks will no longer withhold taxes from paycheques. If unsure, we recommend you consult with a tax professional or CRA to determine whether an employee is eligible for tax exemption and to ensure you are complying with all relevant tax laws and regulations.