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Are there any rules for adding tax exemptions in Zenefits Payroll?

Exemptions can be added only to employees in Zenefits Payroll who have active exemptions (those with an effective date of the current day or earlier) or no exemptions at all. Keep the following rules in mind when adding new exemptions for an employee, and learn more about what happens when an employee is marked exempt in Zenefits Payroll.

  • New exemptions added for an employee without any active exemptions can take effect immediately or in the future.
  • You are able to input a retroactive date for an employee's exemption.
  • Additional exemptions can be added to employees with active exemptions, but these must have a future effective date.
  • Any future-dated exemptions must be removed before more exemptions can be added.
  • Zenefits Payroll does not automatically set employees with qualifying visas as exempt. For example, if an employee has a qualifying F-1, J-1, M-1, Q-1, or Q-2 visa, their exemptions for Social Security and Medicare must be set manually.
  • Please note that FICA (Social Security) and MEDI (Medicare) are two separate taxes in our system.  If you have an employee exempt from both, they will need to be added separately as exemptions.
  • The list of state taxes on the Select Exemptions page is populated based on the employee's work location and home address. More information on supported exemptions.

When an employee in Zenefits Payroll is marked as exempt from a tax, Zenefits Payroll will neither withhold that tax from the employee's paycheck nor report the employee's wages on their employer's returns.

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