How can I exempt a military spouse from state income tax?
To mark an employee as exempt from state income tax due to a military spouse situation:
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Use the Calculation Cards task to open the person's Tax Withholding card for editing.
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Set an appropriate effective as-of date.
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In Withholding Details, select the state component.
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Set Exempt from Wage Accumulation to Yes.
Note: Exemption for Military Spouse on the tax card is for
informational purposes only. The value on this field has no impact on tax
calculation.