Tax Exemptions (PR20.5)

Use Tax Exemptions (PR20.5) to identify tax deductions from which a specific pay summary group is either exempt from taxes, or is subject to update taxable wages only.

For example, sick pay is not subject to state unemployment taxes in certain states. You can use this form to identify the pay summary group representing sick pay as exempt from the deduction for state unemployment tax.

For noncash pay summary groups, you can specify that taxable wages are updated by the amount of the noncash pay summary group, but no tax is withheld.