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How do I exempt employees from being taxed?

Updated on

Create a separate pay group for those employees (Maintenance>>Payroll
Setup>>Pay Groups) and do NOT create the Pay Group Statutory Links (Maintenance>>Statutory Deductions>>Pay Group Statutory Links).

This should only be done for employees who are responsible for filing their own statutory deductions (independent  contractors) as no statutory deductions will come out for these employees.

1.  Create a pay group

Maintenance>>Payroll>>Setup>>Pay Groups

2.  Do NOT create a Pay Group Statutory link

POWERpay>>Maintenance>>Statutory Deductions>>Pay Group Statutory Link

Do not create a Pay Group Statutory Link.  Place your employees in the pay group and process the payroll as you would normally.  NO STATUTORY DEDUCTIONS WILL COME OUT FOR THESE EMPLOYEES!

Usually, pay groups should be linked to Statutory Rules so that the system will know how to calculate taxes and other statutory deductions.  In this case DO NOT CREATE the Statutory Links as you do not want any statutories to be deducted!

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