10.0.13 Bug Report: Exempt from state tax part of year, causes error on W-2 form.

[FNHC]

One of our employees paid State Withholding tax during the first part of 2011. Her status changed and she requested EXEMPT status for the remainder of the year. When printing W-2 forms (Laser 2-UP) W-2 boxes 15, 16, and 17 were suppressed, thus NOT crediting her for State Tax previously withheld.

I have NOT yet discovered any related errors in other reports.

This happened using Massachusetts as our state.

WORK AROUND: Change Employee's state exemption status to NON-Exempt prior to printing. All then prints OK.

I suggest there is no good reason to ever suppress the info in W-2 Box 15 (State and Employer's State ID) and W-2 Box 16 (Taxable State wages, tips, etc.)

Thanks!

[Paul Mayer]

You figured out what I was going to tell you to do to print the W2. There are times when employees are exempt and that is the purpose of that exempt status checkbox. Going forward, you could have just increased her exemptions to a large number like 20 which most likely would have resulted in zero state tax and not marking her as exempt.