1. Administering Payroll for the United States
  2. How can I exempt a military spouse from state income tax?

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 Entries task to open the person's Tax Withholding card for editing.

  2. Set an appropriate effective as-of date.

  3. In Regional, open the state component for editing.

  4. For State Income Tax, select 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.