A software update is now available for the addition of Head of Household Tax Rate Tables for the following states:
- Alabama
- California
- Missouri
- North Carolina
- Wisconsin
Go to Tools > Check for Updates to download and install the update. (Multi-user customers must have all users out of the software to install the update.)
How Do I Change An Employee's Status To Head of Household?
You can now change an employee’s status by going to Payroll > Employees > Deductions Tab > State Taxes Section > Marital Status Entry.
However, if you manually select Head of Household as the Marital Status for a state that does not accept this status, you will receive a validation error.
NOTE In California, Agricultural Labor is not subject to PIT withholding unless the employer and employee voluntarily agree.
To set an employee to exempt from PIT withholding, you can choose any marital status and enter 99 in the Allowances entry.
How Does This Affect Onboarding Apps?
If you are using an onboarding app, we have notified our partners that this option is now available. This means new employees being hired through onboarding apps could soon start being imported with the status of Head of Household.
However, you will need to contact your onboarding app provider to see if or when this will be available.