In Wave, a business can be exempt from federal unemployment taxes (FUTA) or be classified under section 501(c)(3) as exempt from payroll taxes. Ensure this information is up-to-date in Wave to keep your tax calculations and forms accurate.
To learn more about tax exemption statuses, see the IRS publication for Federal Unemployment (FUTA) Tax and Exemption requirements.
Learn more about Federal unemployment tax in Wave.
Mark your business as FUTA exempt
Contact our Support Team to mark your business as FUTA exempt in Wave. Open Mave, Wave’s automated chatbot, and request to speak with a Support Agent.
Once the support team has completed your request, your settings will be updated automatically.
Mark your business as payroll tax exempt under section 501(c)(3)
You must mark your business as payroll tax exempt under section 501(c)(3) during the payroll setup process. When completing the business tax profile, under the Federal tax section, select your organization type under Is your organization categorized as a 501(c)(3) non-profit entity by the IRS, and if so, what type?
If you select the incorrect option for your business, you cannot change this section in Wave without help from our Support Team. To reach them, open Mave, Wave’s automated chatbot, and request a Support Agent.