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February 24, 2024
Question

Salaried Employee has exempt box checked but FWH $ still taken out why?

  • February 24, 2024
  • 1 reply
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A salried employee has the exempt box checked.  There is still federal withholding money taken out. Why?

Thanks.

1 reply

BigRedConsulting
February 24, 2024

Exempt means "don't calculate tax using the tax tables", but if any "Extra Withholding" is entered, then there will be a tax of that amount:

 

Could that be what you're seeing?

 

heazim1Author
February 25, 2024

This is desktop.  That's what I figured.  Scouts honor, the salaried employee has the exempt checked and still has Federal withholding.  Extra withholding is zero.  She did fill out a newer (2020 or later).  Could that have anything to do with this?\\

BigRedConsulting
February 25, 2024

I don't know for sure. What happens if you change the numbers there to 0.00, maybe one field at a time, and then start to create a new paycheck?  Does anything change the tax calculation?