State and Fed Tax Withholding

[Dangelin]

I have a household employee who has chosen not to have state and federal taxes withheld. However, this does not mean the person is exempt from them. How do I set up the employee or transaction so taxes are calculated, but not subtracted from the check amount?

[Paul Mayer]

You cannot as if you mark the employee as tax exempt, it will not calculate nor show you the taxes.

[Dangelin]

Would it work to set up 2 employee records for this person, one tax exempt, and another taxable so that I can see the accumulations?

[Paul Mayer]

Would it work to set up 2 employee records for this person, one tax exempt, and another taxable so that I can see the accumulations?

Only if you created a dummy company for the purpose so you don't have a W2 at the end of the year as well as tax liabilities in all your reports in your regular payroll.

[Dangelin]

Makes perfect sense. By the way, your support is absolutely fantastic!! Saturday morning and I have already received 2 replies from you.