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July 1, 2024
Question

I have two employees from a bordering state (we are in WV, they are from KY). They only work here for the summer, 4 payrolls. They are nonresident exempt from state tax

  • July 1, 2024
  • 1 reply
  • 0 views
I'm not setting up KY to withhold taxes for another $129 a state when my only two employees from KY are seasonal, summer jobs and both signed the exempt agreement.  QB needs a work around to take away the RED ! and action item for this.  

1 reply

July 1, 2024

Thanks for joining the Community, timyankey-howell.

 

If an employee claims exempt, you should have a copy of their W-4 or state form for your records.

 

Here's how to set an employee's State Withholding to exempt:
 

  1. In the left navigation bar, go to Payroll, then Employees.
  2. Click an employee's display name.
  3. From their Tax withholding section, hit Edit.
  4. Choose an applicable Federal W-4 form if prompted.
  5. Find your State Withholding area and use its Filing Status ▼ drop-down list.
  6. Pick Exempt.
  7. Select Save.

 

I've also included a detailed resource about setting employees up for tax exemption which may come in handy moving forward: Exempt your employee from Federal or State Withholding

 

If there's any additional questions, I'm just a post away. Have a lovely Monday!