Overriding Employee Federal Taxes

Scenarios in which you might override federal tax types are infrequent, for example,

• When a priest is exempt Employees who meet requirements that exclude them from minimum wage or overtime regulations or other certain labor regulations. from taxes that other administrative employees of the same church who are not clergy are also exempt from.

• A company who uses contractors would be exempt from paying federal taxes on these workers. The contractors are technically considered their own business and are federally taxed as a company.

To change federal taxes for an employee, do the following:

1. Click Employee and then click Employee.

2. Click the Federal Tax tab.

3. On the Federal Tax tab, specify the type and value of the override:



4. Specify the taxes for which the employee is to be exempt.

5. If necessary, set the effective date of the change.

6. Save the changes.