Setting Up Employees in Puerto Rico

1. Add Puerto Rico to the Company as a State on the Company - Taxes - States window.

2. On the Employee - Employee window set the employee’s home state to PR. This will default the  Annual Form type on the W2 tab to Puerto Rico.

3. On the Federal Tax tab of the Employee - Employee window, set the EE Federal flag to exempt.

• When an existing employee's home state is changed to Puerto Rico on the Employee-States window, the Annual Form Type on the W2 tab of the Employee-Employee window will now automatically change to Puerto Rico.