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joann.sullivan
Level 1

Is there a pay type that will only withhold federal and state taxes and not Medicare or SS?

 
1 Comment 1
AlcaeusF
Moderator

Is there a pay type that will only withhold federal and state taxes and not Medicare or SS?

Hi @joann.sullivan,

 

Welcome to the Community. I'm here to help you choose pay types in QuickBooks.

 

You can check the S-Corp Owners Health Insurance pay type from the employee's profile. It exempts social security, medicare, and FUTA taxes but taxable for federal income tax (FIT).

 

Also, you have the option to exempt specific taxes totally through the W-4 form. Here's how:

 

  1. On the left navigation bar, hover your cursor to Payroll and select Employees.
  2. Click the employee name.
  3. Press Edit employee.
  4. Scroll down to step 5, then click +Enter W-4 form
  5. Scroll down and choose Tax exemptions.
  6. Put a checkmark on the box beside Social Security and Medicare
  7. Hit Done.

 

For more information about the taxability for each pay types, I recommend the following article: Supported pay types and deductions explained.

 

Feel free to hit that Reply button if you have additional questions related to your payroll. Have a great day ahead.

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