Exempt Specific States from a Pay Type

To exempt specific states from a pay type and tax type:
  • From the PDBA Setup - Work With PDBAs (P059116) form, select a pay type and from the Row exit, access the Tax Exemptions form.
  • If the tax type to which you want to add state-level exemptions, is not already on the Tax Exemption form, add the tax type in any of the 15 fields.
  • After you add a tax type, sign out and sign in again, as this is a cached table.
  • From the PDBA Setup - Tax Exemptions (P05TAX) form, use the Form exit to access State/Local W-2. On the PDBA Setup - State/Local W-2 Additions Detail (P07TEW) form, enter the tax type in the header and click Search.
  • In the grid, enter the Work Tax Area code for the state(s) to want exempt. The description is populated automatically.