Set up an employee who is exempt

Some employees are exempt from withholding or from one or more payroll taxes.

You can turn off these taxes as you set up the employee. (If you have set up your company as a 501c3 organization, we automatically exempt your employees from FUTA.)

To turn off taxes as you set up the employee:

1. In the left navigation bar, click Employees.
2. Click Add employee, and then enter the employee's name.
3. Click Enter W-4 form.
4. Fill out information about the employee on the What are the employee's withholdings page.
5. Click the California state taxes arrow to expand the list.
6. Select the employee's filing status, enter allowances, and any additional dollar amount that the employee wants withheld.
7. Click the Tax exemptions arrow to expand the list.
8. Select the checkbox for each type of tax the employee doesn't need to pay.
9. If you selected the FUTA checkbox, you must also click the drop-down arrow next to it, and select one of the FUTA-exempt organizations.
10. Click Done.

See also

• Employees who are exempt from SUI
• Québec health services fund (QHSF)
• Payroll topics

Still stuck? Contact us