Thanks for taking the time to post here in the Community, aj-embtel-com.
Your employees can claim tax-exempt on their Federal Form W-4 or state form if they meet certain requirements. If you are not sure if an employee should be exempt from certain taxes, I'd recommend consulting with a tax professional or financial advisor.
If you'd like to track your employee as tax-exempt, please see these steps:
Go to the Payroll menu, then click Employees.
Look for the employee's name.
Under Employee Details, hit the pencil icon beside Pay.
Tick on the pencil icon under the question What are (employee's name) withholdings?.
Scroll down until you reach the Tax Exemptions section and click on the drop-down arrow.
Choose the taxes the employees are exempt from, then click Done.