- Go to Write-Up or Batch Payroll > Update Company Files and select Employee information.
- Select an employee then Edit Record.
- Go to the Wage/Withholding tab and in the first available WH field enter a description.
- For withholdings separately reported in W-2 boxes 8–14 select the correct code from the dropdown menu (for example, for 401(k), select code 12D).
- Select withholding items
- Select W-2 boxes 1 and 3 if this withholding reduces the taxable wages in Box 1 and 3.
- Select Box 7 if the employee receives tips.
- Select the FWT box if it isn't subject to federal withholding tax.
- Select the FICA box if it isn't subject to Social Security or Medicare taxes.
- Select the FUTA box if it isn't subject to federal unemployment tax.
- Enter the SUTA tax code if it isn't subject to state unemployment tax.
- Enter a state tax code if it isn't subject to state withholding (only applies to states with income tax).
- Enter a local tax code if it isn't subject to local tax (only applies to localities with a local tax).
- Enter an Other State tax code if it isn't subject to this tax (these are employer-only taxes that only apply to some states, for example, the California Employee Training Tax).
How to set up tax-exempt withholding items in EasyACCT
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