Once you've completed onboarding, reach out directly to your administrator to have them make the change in payroll.
If your company uses Zenefits Payroll, then your administrator will enter the exemption using these steps.
Nonresident employees with an F-1, J-1, M-1, Q-1, or Q-2 visa can claim exemption from FICA taxes during onboarding.
To claim more than 20 allowances for state or federal income taxes as an employee in Zenefits:
Please note that allowances do not affect FICA withholding. Learn more about claiming exemption from FICA in Zenefits.
You can update the tax withholding and filing status information on your Federal and State W-4s directly in Zenefits in the Tax Info section of the Personal Information app.
There's no need to upload anything. Zenefits will generate a new W-4 when you make changes to tax information.
Note: For any questions on the new W-4, you can learn more here.
To specify an additional fixed dollar amount for Federal or state withholding, enter the amount in the Additional Withhold field during onboarding, or afterwards by doing this:
During onboarding, you can enter your state tax filing and withholding information for the state(s) where you live and work. After onboarding, click here to enter or update your state withholding allowances and filing status from the Bank and Tax Info card. If you move to a new state, click here change your home address in the Personal Information card, then update your tax information in the Tax Info section.
Zenefits uses your home address and the address of your work location (which your manager assigns to you) to determine the states for which you should provide tax info. You'll fill out at least the federal W-4, and if your home address and work addresses are:
Each time you make changes to your tax information, you'll need to provide a signature. Once you do, Zenefits will generate a new W-4, which you'll be able to download.
When in doubt, please talk to a tax advisor to determine where you should pay taxes as an employee.
Employees can be exempt from taxes for a number of reasons. Individual situations can differ, but here are a few general guidelines for eligibility for full exemption.
IRS regulations state that individuals who wish to claim exemption from federal income taxes must meet both of the following criteria:
Zenefits does not offer tax advice. Please consult a tax advisor to determine whether a particular employee qualifies for exemption from taxes.
You employer must begin withholding the Additional Medicare Tax (0.9%) from your wages once it has paid you wages in excess of $200,000. If you earned over $200,000 from a previous employer in the same year, you are still responsible for paying the additional tax, but your current employer may not be willing or able to handle these extra withholdings for you.
Contact a tax advisor for more information and instructions on handling the additional withholding. For example, you have the option to make estimated payments if you expect to have any liability for the additional tax, or to request that your current employer withhold additional income tax on Form W-4, which can then be applied to all taxes on your Form 1040.
If an employee has already met the annual wage base limit for Social Security with a previous employer in a given year, they can contact a tax advisor to recover any excess tax paid on their personal returns.
However, the current employer is still required to withhold and pay Social Security taxes up to the annual wage base limit for wages paid to the employee (even if they reached the limit for the year with a prior employer). Employers cannot honor the Social Security wage cap for wages paid to a current employee by a former employer.
How does Zenefits Payroll determine what taxes should be withheld?
Zenefits Payroll uses the home address and work location provided when employees are hired into our system. Using a process called geolocation, Zenefits Payroll relies on GPS data to identify a precise location for each address. The geolocation data, in combination with Nexus and Reciprocity data, produces the employee's taxation results.