Customizing Withholdings

I do not want NannyPay2 to withhold federal or state personal income tax but I want the software to take out Social Security and Medicare (FICA) taxes. How do I configure the software to do that?

Go to the NannyPay2 settings screen by clicking on “Employer-Employee Settings” on the software’s vertical menu bar. Click on the “Federal” tab and uncheck “I have a voluntary agreement with my employee to withhold federal income tax.” That will stop federal withholding. Then, click on the “State” tab and uncheck “I have a voluntary agreement with my employee to withhold state income tax.” That will stop state withholding. Social Security and Medicare taxes will continue to be withheld from your employee’s wages.

Last updated on February 24, 2021
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