How to Stop Calculating a Tax for the US

In cases where you need to disable calculation for a tax, you can do it for your entire organization or for individual employees.

How to bypass tax collection for your organization

You can do this at either payroll statutory unit (PSU) or tax reporting unit (TRU) level.

Note: Some state taxes require special steps to bypass them. For further info, see the following in the Help Center.

From your implementation project, open your organization card for editing.

For the PSU card, use the Legal Entity Calculation Cards task.

For the TRU card, use the Legal Reporting Unit Calculation Card task.
Select the appropriate component group for the tax level.

If you are bypassing a state tax, add the regional calculation component if it doesn't already exist.
In Calculation Components, select the tax you are bypassing.
In Calculation Component Details, select the organization information detail and click Edit.
Select the Bypass collection self-adjustment method.

Note: Wage accumulation still occurs for these taxes.
Click Save and Close.

For further info, see Tax Calculation Methods for the US in the Help Center.

You do this on the person's Tax Withholding card. For further info, see Tax Withholding Card in the Help Center.