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 State Income Tax to Exempt from wage accumulation and tax withholding.

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.