How do I disable a tax for the US?

In cases where you need to stop calculating a tax and accumulating wages, you can do it for your entire organization or for individual employees.

How to stop tax collection for your organization

You can do this at either payroll statutory unit (PSU) or tax reporting unit (TRU) level.

Note:

Some state taxes require special steps to bypass them. For further info, see What federal and regional taxes are available for the US? in the Help Center.

1. To stop calculating a tax at the PSU level, use the Legal Entity Calculation Cards task from your implementation project.

   To stop at the TRU level, use the Legal Reporting Unit Calculation Cards task.

   Settings at the TRU level override those at the PSU level.

2. Select the appropriate component group and calculation component for the tax.

3. Select Enterable Calculation Values on Calculation Cards.

4. Click Create.

5. Search for and select the appropriate calculation value.

   For this tax	Use this
   Federal Income Tax	Tax exemption
   Federal Unemployment	Employer tax exemption
   Medicare	Employee tax exemption Employer tax exemption
   Social Security	Employee tax exemption Employer tax exemption
   State Disability	Employee tax exemption Employer tax exemption
   State Family Leave Insurance	FLI employee tax exemption FLI employer tax exemption
   State Income Tax	Tax exemption
   State Medical Leave Insurance	MLI employee tax exemption MLI employer tax exemption
   State Parental Leave Insurance	PLI employee tax exemption PLI employer tax exemption
   State Unemployment	Employee tax exemption Employer tax exemption
   Washington Long Term Care	Employee tax exemption

6. In Value, select the appropriate exemption status.

7. Save your work.

How to stop tax collection for an individual

You do this on the person's Tax Withholding card.