Issue/Symptom/Question

Employee # 9999 lives in a state with income tax but PENTA isn't withholding any SIT, why?

Environment

Employee Payroll Information Screen/Withholding tab
Payroll> Employee> Employee Payroll Information Screen> Withholding tab

Resolution/Fix/Answer

An employee can be manually exempted from State Income Tax in 2 separate places on the Withholding tab of the Employee Payroll Information screen:

1. "Subject to State W/H (Y/N)" Field: When this field is set to N, PENTA will not accrue any State Taxable wages and will not withhold any State Income Tax.
   
2. "Fixed Withholding Amount" Field: This field is a manual override of the Per Pay Period State Income Tax withholding. When an employee is initially set up this field defaults to a value of null (meaning no override is present). If this field contains a 0, then PENTA will not withhold any employee SIT.