San_Mateo

Account Executive

How the hell do I change my tax status to exempt in Paylocity?

I'm expecting a much larger commission check than normal. I don't want to get taxed into oblivion on this and wanted to change my federal tax status to exempt for this check and change it back afterwards.

For the life of me I can't figure out how to do this in Paylocity. I know at past companies, it was super easy to do with ADP but I've had no luck with Paylocity, I've called every number on their site with no luck.

Anyone here use Paylocity and know how I can change my federal tax status to exempt and make it so that no federal taxes are taken out of this one?

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9 comments

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FamilyTruckster

Politicker

Exec Director, Major Accounts

NFC but congrats on ringing the register 🤑🤑🤑

Diablo

Politicker

Sr. AE

Congrats (for the elephant check), did you try emailing them?

hh456

Celebrated Contributor

sales

call HR as well, normally they have a POC that can help you with your tax change. you should be able to update it whenever you want.

also - there are new tax forms this year, its more confusing than usual. i dont know if you can claim exempt or have a bunch of dependents like the old method.

MCP

Valued Contributor

Sales Director

I’ve never heard of such nonsense, but I guess that’s what IRS audits are for.

braintank

Politicker

Enterprise Account Executive

Maybe too personal, but what's the point? You're just kicking the can down the road. Uncle Sam is still going to get his cut.

Flippinghubs

Opinionated

Account Executive

congrats!

San_Mateo

Fire Starter

Account Executive

Well the way our payroll is set up is commission is taxed the the same way that our regular salary is taxed. Meaning they assume you’re making that amount every two weeks. Since this was a much larger than usual check they’re bumping me up into like the top 1% tax bracket.
Of course I’d eventually get that money back on my tax return, but I’m not too keen of giving the government an interest free loan (*stolen from one of Sahil’s old LinkedIn comments). And this is only one check, too guys. This has always been a pretty common practice at any legit sales org I’ve worked for.

San_Mateo

Fire Starter

Account Executive

FYI - for future reference I was able to figure it out in Paylocity. For anyone unfortunate enough to have to use them as well:
On the self service portal, go to the “Pay” tab and click “more” then edit tax setup.
Click “Federal Income Tax”. About the 4th option on the right it says “Extra Withholding” and change that option to “Blocked” and that will essentially set you as exempt.
I’ve never done the whole adding a bunch of dependents method personally, but from my understanding the new tax regulations have made that more difficult than it was in the past.

HI question! Itried the same thing for the same reason but it turned to yellow status. Did yours automatically change?

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San_Mateo

How the hell do I change my tax status to exempt in Paylocity?

9 comments

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