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Feb 8, 2024 9:45 PM UTC
Question

Should I mark a tax exemption fo social security and medicare if my employee pay his medicare?

For example, my employee has his 1095a because he pays his medicare, in that case, his case is applicable for social security and medicare exemption in payroll?

1 reply

Nicole_N
Feb 8, 2024 11:59 PM UTC

Welcome to the Community, @usermurestaurantllc. I'll share some insights about setting your employee as tax-exempt in QuickBooks Online (QBO).

 

To verify if your employee is subject to these taxes, I recommend consulting with a tax professional or accountant for specific guidance tailored to your situation. 

 

Once verified, you can follow the steps below to mark your employee as exempt:
 

  1. Go to Payroll, then Employees.
  2. Choose your employee.
  3. From Tax withholding, select Edit.
  4. Select the applicable Federal W-4 form if prompted.
  5. Under Tax exemptions, tick Social Security and Medicare.


     
  6. When finished, tap Save.

 

For more information, check out this link: Exempt your employee from Federal or State Withholding.

 

I'm adding this article in case you want to learn how to exempt your company from sales tax and get refunded: Request sales tax exemption and refund.


If you've got additional questions about tax exemptions in QuickBooks, just leave a reply below. The Community is always around to help.