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An employee is asking for a tax exempt paycheck. How would I go about doing this?

Employee wants to not have taxes taken off her paycheck for one week since she needs the extra money. She offered to fill out a new W4 that would be valid for only a week and mentioned that this is common practice where she worked before. 

I am not sure how to handle this request. Any help will be greatly appreciated. 

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Best answer 09-09-2019

Accepted Solutions
Established Community Backer ***

You cannot make them exempt for All Taxes; the only tax t...

You cannot make them exempt for All Taxes; the only tax they can change is Income Tax Withholding.

2 Comments
Established Community Backer ***

You cannot make them exempt for All Taxes; the only tax t...

You cannot make them exempt for All Taxes; the only tax they can change is Income Tax Withholding.

Not applicable

Hello billing,  I'd be happy to assist you.  You can temp...

Hello billing

I'd be happy to assist you. 

You can temporarily set up this employee as exempt from any taxes. However, it'd be best to consult a tax professional before creating a tax exempt paycheck.

To set up employee as exempt from taxes:

  1. In the left navigation bar, click Employees.
  2. Click on the employee name.
  3. Click on the Edit employee button. 
  4. Click on the pencil icon under the question What are (employee's name) withholdings?
  5. Scroll down until you reach the Tax Exemptions section and click drop down arrow.
  6. Select the taxes the employees are exempt from. 
  7. Click Done

Repeat these steps to change the exempt status of the employee.

Let me know if there's anything else you need, or if you have other questions.

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