When should exemptions be applied?
The exemptions tool is a powerful feature because it allows us to, on the surface, not calculate taxes for anyone in Zenefits. Below is a list of tax items that can now be supported with the exemptions feature as well as a brief description and what to specifically mark the employee exempt from.
Corporate Officers (May be exempt from state unemployment tax in WA, OR, and MN.)
- Mark employee as exempt from SUTAand SUTA Surcharge(s).
Texas Non-Profits (If a nonprofit has 4 or fewer employees, then the company is not subject to SUTA)
- Mark all employees exempt from SUTA.
Oregon Non-Profits (Non-profits in Oregon are not subject to TriMet tax.)
- Mark all employees exempt from TriMet.
Oregon LLC Members (Owners of LLCs in Oregon can be exempt from SUTA.)
- Mark employee exempt from SUTAand SUTA Surcharge(s).
Michigan Renaissance Zones (If you work and live in specific areas of Michigan, you are exempt from Michigan state taxes. Find more information here.)
- Mark the employee s exempt from the applicable WITH and SUTA taxes.
Visa employee (An employee's Visa status affects subject taxation.)
- Mark all employees exempt from the applicable taxes. This is based on their Visa status.
Children of Owners (Dependent on their age, a child may be exempt from certain federal and state taxes if they work at the same company that their parents owns.)
- Mark child (employee) exempt from the applicable taxes.
Religious Exemptions (Amish and Mennonite employees are exempt from FICA and MEDI.)
- Mark any Amish or Mennonite employee exempt from both FICA and MEDI.
Statutory Employees (Employees that normally would classify as a contractor, but state or federal law says that they are an employee. [Note: We currently don't support marking the Statutory Box on the W-2.])
- Mark the employee exempt from FIT.
Interns (Based on the intern's age and state, an intern may or may not be subject to state/federal taxes.)
- Mark the intern exempt from the applicable taxes.
Please note that this list is only meant to serve as an example, and does not replace the advice of an employment attorney.
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