Tax Status

This option is not applicable for a non-paid individual.

Use Tax Status to view or update tax status information. The employee can view this information in the employee tab.
 

Note:

If your company participates in the Tax Status Approval process and there are pending tax status change requests, the fields on this screen are read only until the pending tax status change request is approved, declined or cancelled. Navigate to the Approve Tax Status Changes page or contact your administrator to manage the request.

Display Tax Status Requests
 

Note:

The Display Tax Status Requests link only displays if your company participates in the Tax Status Approval process.

Use Display Tax Status Requests to view requests pending approval or the history of tax status changes.

View Tax Status

  1. Click administration | Employee Compensation | Salary.

  2. Click Tax Status. The Tax Status screen displays.

  3. Select the employee in which you want to view tax status information for from the employee drop-down menu at the top of the screen.

Update Tax Status

  1. Click administration | Employee Compensation | Salary.

  2. Click Tax Status. The Tax Status screen displays.

  3. Select the employee in which you want to update tax status information for from the employee drop-down menu at the top of the screen.

  4. In the Federal column:

    1. Select the filing status from the Filing Status: drop-down menu.

    2. Type the number of your allowances in the Allowances: field.

    3. Type the additional withholding amount in the Additional Withholding ($ or %): field. This number can be a percentage or flat dollar amount.

    4. Type the tax override amount in the Tax Override ($ or %): field. This number can be a percentage or flat dollar amount.

    5. Select the withholding status in the Exempt from Withholding? drop-down menu. Refer to the Exempt from Withholding? table below for additional information.

    6. Click Save. The Update Agent transfers all information saved in this screen to Preview during the next download.

  5. In the State column:

    1. Select the state in the Employee Tax State: field.

    2. Select the filing status from the Filing Status: drop-down menu.

    3. Type the number of allowances in the Allowances: field.

    4. Type the additional withholding amount in the Additional Withholding ($ or %): field. This number can be a percentage or flat dollar amount.

    5. Type the tax override amount in the Tax Override ($ or %): field. This number can be a percentage or flat dollar amount. Indicate the type of percentage from the drop-down menu.

    6. Select the withholding status in the Exempt from Withholding? drop-down menu. Refer to the Exempt from Withholding? table below for additional information.

    7. If applicable, select the state filing status override value from the State Filing Status Override: drop-down menu. Refer to Tax State Filing Status Values for valid override values.

    8. Select the state unemployment state from the State Unemployment (SUI) State: drop-down menu.

    9. Select the withholding status in the Exempt from SUI Withholding? drop-down menu. Refer to the Exempt from Withholding? table below for additional information.

    10. Select the disability state from the Disability (SDI) State: drop-down menu.

    11. Select the withholding status in the Exempt from SDI Withholding? drop-down menu. Refer to the Exempt from Withholding? table below for additional information.

    12. Click Save. The Update Agent transfers all information saved in this screen to Preview during the next download.

  6. If the employee is on workers' compensation, select the workers' compensation code (The employee's assigned workers' compensation code. For clients that do not subscribe to Paychex Workers’ Compensation Payment Service, this field is automatically coded with the default workers' compensation code, blank, or any other workers' comp code values that come over from Preview for new employees added via the Hiring | Hire/Rehire Employee link from the Workers' Comp Code: drop-down menu or select the workers' compensation waive code reason from the Workers' Comp Waive Reason: field.

  7. If applicable, type the corporate officer code in the Corporate Officer Code: field.  Valid corporate officer code values are:

P - Partner
S - Sole Proprietor
X - Executive/Corporate Officer
blank - Regular Employee  

  1. Click Save. The Update Agent transfers all information saved in this screen to Preview during the next download.

Refer to the information below when updating the listed fields:

Exempt from Withholding?

Note:

If you need to change your Exempt from Withholding status, print and complete a blank Federal W-4 and the appropriate state withholding form. Return the completed forms to your company administrator.

Exempt from Withholding? Option

Description

No,Subject to Tax

Earnings are subject to state, federal, and any local taxes that apply and are withheld from the employee's paycheck.

Yes,Exempt

Earnings that are exempt from being taxed at the current time and, therefore, no taxes are withheld from the employee's paycheck.

No,Subject but not withholding

Earnings are subject to state, federal and any local taxes that apply, but are not currently withheld from the employee's paycheck.
 

Print Tax Forms

Use Print Tax Forms to print certain tax forms:

Form W-4

  1. Print a new Form W-4 to change federal withholding by clicking Print W-4.

  2. Complete, sign, and date the Form W-4.

  3. Submit the Form W-4 for processing.

State Withholding Certificate

    1. Print a new state withholding certificate to change state withholding by clicking Print Form.

    2. Complete, sign, and date the state withholding certificate.

    3. Submit the state withholding certificate for processing.