Payroll > Employees > Employee List > Click the Employee Name > Taxes > Edit.  

Federal Filing

Filing Status: By default, the filing status will be Single. Choose the correct filing status in the drop-down list as specified on the employee’s Form W-4. (Click here for a blank Form W-4.)

Allowances: By default, the allowances will be zero. Enter the number of allowances as specified on Line 5 of the employee’s Form W-4.

Additional Withholdings: By default, the additional payroll withholding will be zero dollars. Enter the dollar amount of additional withholding as specified on Line 6 of the employee’s Form W-4.

If the employee has written “EXEMPT” Note that employees can make their own changes to their federal tax withholdings by completing an electronic Form W-4 in their MY Patriot employee portal.  At the time an employee makes a change, their federal tax withholdings are automatically updated for the next time you run payroll.  You will receive an email notification and can view their W-4 history on their Taxes page.  For more information, see Employee Federal Tax Updates in MY Patriot Employee Portal.

When Is the Form W-4 Deadline for Exemptions

State and Local Withholding

* Note that state and local tax fields vary by state.  Here are articles that address some state-specific fields:

Arizona Employee Tax Withholding Help
Arkansas Employee Tax Withholding Help
California Wage Plan Codes
California Employee Tax Withholding Help
Georgia Employee Tax Withholding Help
Massachusetts Employee Tax Withholding Help
Massachusetts – Reporting Owner/Officer Status
Missouri Employee Tax Withholding Help
Nebraska Nonresident Employee Tax Percentage
Vermont Nonresident Employee Tax Percentage

For all other states, here are general descriptions:

State Filing Options: These options depend on the work state. Enter the filing option as specified on the employee’s state income tax withholding form. Do not add extra spaces.

State Additional Withholding: By default, the additional withholding will be zero dollars. Enter the dollar amount of additional withholding listed on the employee’s state income tax withholding form.

Non-Resident Certificate:  This field appears if the employee lives in a different state than the company location.  Select “Yes” if the employee has a state non-resident certificate.

Local Tax: The “Local Withholding” section will only appear in certain states.  The Local Tax drop-down list will be pre-filled based on the employee’s home address. There are two reasons that the employee’s Resident Local Tax would need to be selected:

1. If the employer has selected optional courtesy tax withholding for the employee’s city of residence, this becomes a required field for all employees. Select the correct locality for which the company will be withholding and remitting taxes for the employee. Select “No Local Tax” for employees who are not having courtesy tax withheld.
2. If the employee works from home, as indicated in the “Works Only From Home” checkbox on the Advanced Employee Tax Settings section at the bottom, this becomes a required field for this employee. Select the correct locality based on the employee’s residence.

School District: The School District Tax applies only in parts of Ohio and Pennsylvania. The School District Tax field shows a drop-down of all school districts available in the county of the employee’s zip code. Select the school district in which the employee resides. Choose “No School District Tax” if this does not apply.

Advanced Employee Tax Settings

Exempt From Taxes: In most cases, employees are required to pay income taxes, and employers are required to pay FUTA and SUTA tax on employees. These fields should only be marked ‘Exempt’ if the employee is not obligated to pay Federal, Social Security, Medicare, State Income Tax, or if the employer is not required to pay FUTA or SUTA on this employee.  Otherwise, leave each selection ‘Not Exempt.’

When these tax types are marked ‘Exempt,’ that tax will not calculate nor be withheld from the employee’s paycheck.