Tech Tip: Setting Up Employees Who Have a W-4 Exempt Status

Our new employee’s W-4 says EXEMPT in line 4-c. How do I set up AccountMate for the exemption?

Review the IRS W-4 instructions about exemption:

• Form W4
• Topic No. 753 Form W-4 – Employee’s Withholding Certificate

Configure the Employee Maintenance for the employee as follows if you do not want to calculate Federal Withholding Tax but would still want to report the employee’s federal wages:

If the Use W-4 Form 2020 or later checkbox is not marked in the Employee Maintenance ► W-4 Info tab, then mark the Federal ► Override Withholding checkbox. Enter 0.00 in the Override by ► Amount field. Another way to achieve this is to set the Allowances to 99, which will result in zero withholding amount.

If the Use W-4 Form 2020 or later checkbox is marked in the Employee Maintenance ► W-4 Info tab, go to the W-4 2020 tab; then, mark the Override Withholding checkbox; then, enter 0.00 in the Override by ► Amount field.

Note: The Apply Federal Tax checkbox must be marked.