How can I exempt a military spouse from state income tax?

To mark an employee as exempt from state income tax (SIT) due to a military spouse situation:

  1. Use the Calculation Cards task to open the person's Tax Withholding card for editing.

  2. Set an appropriate effective as-of date.

  3. In Withholding Details, select the state component.

  4. 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.