Learn how to set your employee’s Federal or State Withholding (or Income Tax) as exempt.
Your employees can claim exempt on their Federal Form W-4 or state form if they meet certain requirements. Exempt means they won’t have any Federal or State Withholding taxes deducted from their paychecks.
If your employee claims exempt, you should have a copy of the W-4 or state form for your records. Here’s how to set the Federal or State Withholding to exempt in QuickBooks.
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