How to edit employee tax details

Follow these steps to change the amount of tax that is deducted from an employee's gross pay:

Canada

First, you will have to obtain your employee's federal and provincial TD1 forms prior to filling in this information. 

  1. Click Payroll, then Employees in the left-hand navigation menu.
  2. Click on the name of the employee.
  3. On the left-hand menu click on Tax Details.
  4. In the Federal claim field enter the amount listed on Line 13 of your employee's federal Personal Tax Credits Return form
  5. In the Provincial claim field enter the amount listed on the "Total Claim Amount" Line of your employee's provincial/territorial Personal Tax Credits Return form
  6. You can also deduct additional tax, or exempt your employee from federal or provincial tax on the same page. You would find the additional the additional income tax to deduct per pay period on the second page of your employee's Federal form.
  7. After each change, make sure you click Save.

You're done! Both federal and provincial tax amounts have been updated and will be reflected on your employee's next pay statement. 

We have more information on TD1 forms here.

U.S.

First, you will have to obtain your employee's federal (and state, if applicable) Form W-4

  1. Click Payroll, then Employees in the left-hand navigation menu.
  2. Click on the name of the employee.
  3. On the left-hand menu click on Tax Details. 
  4. Fill in each field that requires an amount. If there is field in which you have no amount to enter, enter "0."
  5. You can also mark your employee as exempt from federal income tax, Social Security, Medicare, and/or state income tax on the same page. Please note that additional income tax to be withheld for either federal or state is the amount per pay period
  6. After each change, make sure you click Save.

You're done! Your employee tax amounts have been updated and will be reflected on your employee's next pay statement.

We have more information on the new federal withholding certificate for 2020 Form W-4 here.

 

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