tip and state tax

[marge]

Montana does not tax tips. How do I exempt state tax. I know to indicate exemptions on the company when I set up deductions but this doesn't work the same, does it?

So far, I've been doing state taxes manually before hitting the pay and save button. Thanks.

[Paul Mayer]

There is no way to exempt just tips, only for "all wages" which would not work. What you are doing is the only way to pull it off.