How can I mark an individual employee as exempt from federal, state, or local taxes?

Mark an employee as exempt from many types of taxes on their Tax Withholding card. These taxes include state taxes, Federal Unemployment Tax Act (FUTA) tax, social security tax, county taxes, and city taxes.

  1. Open the person's Tax Withholding card for editing.

  2. Click either the Federal or Regional calculation component.

  3. Select the individual taxes for exemption.