How to setup an employee to have no taxes deducted from their income

Note: Before proceeding, if you have not already done so, please verify with your accountant and/or the Canada Revenue Agency whether you should stop deducting taxes for an employee or not.

Method I: Increase Personal Tax Credits

1. Open the Employee Record.
2. Select the Taxes tab.
3. Under Personal Tax Credits, enter amounts that are greater than the employee's yearly income Example (999,999,999.00)

   Note: You will want to enter this amount both under Federal and under Provincial.

4. If you do not wish to deduct EI, CPP/QPP, or QPIP, you can uncheck these options.
5. Click Save and Close.

Method II: Set specific income not to calculate tax

1. Make sure login as sysadmin and single user mode, on Main screen click Setup, Settings, Payroll, Income.
2. You can uncheck Calc Tax, Calc EI or Calc CPP/QPP from that income and click OK to save the changes.

   Note: if calc tax is unchecked WCB will stop calculate on that income as well.

3. Any employee that doesn't want to their taxes to be deducted can use this income.

Method III: For Version 2015 or Higher

1. Open the Employee Record.
2. Select the Taxes tab.
3. Under Tax Deduction section you can have Calculate Tax, Calculate EI and Calculate CPP/QPP uncheck accordingly and then click Save and Close.