Tax Withholding Card Tax and Wage Accumulation Exemptions

On the Tax Withholding card, each federal income tax (FIT) and state income tax (SIT) component has a Withholding Exemption section. To exempt an employee from tax withholding or wage accumulation, mark one of the following as Yes.

Field name	What it does
Exempt from (component) Income Tax	Excludes this tax from withholding.
Exempt from Wage Accumulation	Excludes this tax from withholding, and doesn't accumulate wages for the component. For purposes of exempting an employee from SIT due to a military spouse situation, mark this as Yes for the state component if: You don't want to withhold SIT. You don't want to accumulate wages.

Field name

What it does

Exempt from (component) Income Tax

Excludes this tax from withholding.

Exempt from Wage Accumulation

Excludes this tax from withholding, and doesn't accumulate wages for the component.

For purposes of exempting an employee from SIT due to a military spouse situation, mark this as Yes for the state component if:

You don't want to withhold SIT.
You don't want to accumulate wages.

For FIT, if you mark both as exempt, the payroll process ignores Exempt from Wage Accumulation.

For SIT, if you mark both as exempt, the process honors both.