Zero wages returned for a tax where EE filed exempt on W-4
How do you report the quarterly/annual taxable wages that are the basis for the tax calculation when the tax engine does not return gross wages, subject wages nor gross subject wages in the instances where an EE W-4 (Fed or State) claims an exempt status? Do you go back and calculate what the subject wages should have been for those EEs? How do you keep track of the pretax benefits for each State tax to make that calculation?
STE 2019-R3 no longer returns any wages for SIT taxes where there is an "EXEMPT" W-4. I have been told that this was done at the request of a majority of clients.