Tax exemptions are a key component of payroll. These are used to inform Zeal that an employee and/or company is exempt from certain tax withholdings.
There are three options for exemptions: Not Exempt, No Reporting, and No Withholding
- Not Exempt: Selecting this option means that the employee/company is subject to taxes. Zeal will withhold the tax from the employee or company
- No Reporting: Selecting this option means that Zeal will not withhold the tax specified as well as not report it on the appropriate filings
- No Withholding: Selecting this option means that Zeal will not withhold taxes for the tax specified
Adding tax exemptions to an employee
- Navigate to the Employee Profile and click Tax Exemptions on the left-side bar
- On the Tax Exemptions page, applicable exemption taxes will be available to select, e.g. FICA, FUTA, etc.
- Change a specific tax exemption, click Edit
- Once completed, click Save Changes to have the new changes updated.
- The tax exemption will take effect on the next payroll run for the employee
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