Tax Withholding Card Tax and Wage Accumulation Exemptions

On the Tax Withholding card, the Federal and Regional components offer fields that allow you to exempt an employee from tax withholding and wage accumulation.

Component

Field name

What its options do

Federal

Exempt from Federal Income Tax Withholding

Yes

  1. Doesn't withhold federal income tax (FIT)

  2. Accumulates wages

No

  1. Withholds FIT

  2. Accumulates wages

Federal Income Tax

Exempt from wage accumulation and tax withholding

  1. Doesn't withhold FIT

  2. Doesn't accumulate wages

Not exempt from wage accumulation and tax withholding

  1. Withholds FIT

  2. Accumulates wages

Federal Unemployment

Exempt from tax withholding

  1. Doesn't withhold federal unemployment (FUTA)

  2. Accumulates wages

Exempt from wage accumulation and tax withholding

  1. Doesn't withhold FUTA

  2. Doesn't accumulate wages

Not exempt

  1. Withholds FUTA

  2. Accumulates wages

Medicare

Exempt from tax withholding

  1. Doesn't withhold Medicare

  2. Accumulates wages

Exempt from wage accumulation and tax withholding

  1. Doesn't withhold Medicare

  2. Doesn't accumulate wages

Not exempt

  1. Withholds Medicare

  2. Accumulates wages

Social Security

Exempt from tax withholding

  1. Doesn't withhold Social Security (SS)

  2. Accumulates wages

Exempt from wage accumulation and tax withholding

  1. Doesn't withhold SS

  2. Doesn't accumulate wages

Not exempt

  1. Withholds SS

  2. Accumulates wages

Regional

Exempt from State Income Tax Withholding

Yes

  1. Doesn't withhold state income tax (SIT)

  2. Accumulates wages

No

  1. Withholds SIT

  2. Accumulates wages

State Income Tax

Exempt from wage accumulation and tax withholding

  1. Doesn't withhold SIT

  2. Doesn't accumulate wages

Not exempt from wage accumulation and tax withholding

  1. Withholds SIT

  2. Accumulates wages

State Disability Insurance

Exempt from tax withholding

  1. Doesn't withhold state disability insurance (SDI)

  2. Accumulates wages

Exempt from wage accumulation and tax withholding

  1. Doesn't withhold SDI

  2. Doesn't accumulate wages

Not exempt

  1. Withholds SDI

  2. Accumulates wages

State Unemployment

Exempt from tax withholding

  1. Doesn't withhold state unemployment insurance (SUI)

  2. Accumulates wages

Exempt from wage accumulation and tax withholding

  1. Doesn't withhold SUI

  2. Doesn't accumulate wages

Not exempt

  1. Withholds SUI

  2. Accumulates wages

Exempt from City or Township Income Tax Withholding

Yes

  1. Doesn't withhold city or township income tax

  2. Accumulates wages

No

  1. Withholds city or township income tax

  2. Accumulates wages

Family Leave Insurance

Exempt from tax withholding

  1. Doesn't withhold family leave insurance (FLI)

  2. Accumulates wages

Exempt from wage accumulation and tax withholding

  1. Doesn't withhold FLI

  2. Doesn't accumulate wages

Not exempt

  1. Withholds FLI

  2. Accumulates wages