State Wage Adjustments

You might have to set up some DBAs as exempt from state taxes. The system records exempt amounts in tax history tables as excludable wages. When the system calculates the taxable wage, it subtracts the excludable wage and any wage in excess of limits, from the total gross wage.

For W-2 reporting, you might need to add exempt DBA amounts back into the taxable wage for specific states.

Note: For regular payroll processing, you can use tax type F to exempt a DBA from state taxes. To add exempt amounts back to an employee's W-2, you must use tax type F.