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Microsoft Dynamics GP (Archived)

How to exempt an employee from state withholding

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User needs to exempt an employee from state tax withholding.

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  • Bill Campbell Profile Picture
    12 on at

    So not fair that it is different in the US because this is pretty simple click of a 'employee does not pay tax' at either provincial or federal level.

    But, alas, this is for the US.   Sorry NOLA - hope someone knows this answer.

  • Community Member Profile Picture
    on at

    I agree. Thank you for your support! :-)

  • L Vail Profile Picture
    65,271 on at

    Hi,

    Why not just modify their State information to divorce them from the state? Does the state wage still need to drop onto a W-2? Couldn't you go into each of their pay codes and uncheck the box for state tax?

    I'm missing something here.

    Kind regards,

    leslie

  • Community Member Profile Picture
    on at

    The state wage does still need to show up on the W-2 and the quarterly/annual state filing. They have decided to just enter 99 exemptions. Thanks!

  • Verified answer
    Community Member Profile Picture
    on at

    I ran across this while researching something else. msdynamicswiki.com/.../how-to-set-up-an-employee-to-be-exempt-from-paying-state-taxes-in-microsoft-great-plains

    Apparently if you set the additional withholding to $-1.00 and the estimated withholding to $1.00 it results in 0 taxes. It worked when I tested it. YAY. Thanks everyone.

  • L Vail Profile Picture
    65,271 on at

    Great info NOLA! I'll have to get this to the Payroll section of my blog so that I don't forget it. Cool site too.

    Kind regards,

    Leslie

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