Puerto Rico Young Entrepreneurs Act

The payroll process automatically exempts taxes for employees eligible for the Puerto Rico Young Entrepreneurs Act.

How you configure Form W-2PR

Form W-2PR displays these earnings as Code E in box 16.

To properly display them, define this balance feed before generating your year-end data.

Element	Input	Add or Subtract	Balance
Residence State Income Tax	PR Exempt Income	Add	W2 Territory Exempt Salary

You can configure boxes 8, 9, and 10 to display the earnings in excess of the act if you set the appropriate feeds to include only those wages.

Exclude Individual Employees

For employees who are opting out of this exemption:

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

2. Open their Puerto Rico regional component for editing.

3. Set Young Individual Opting Out of Wage Exemption to Yes.

4. Save your work.