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E1: 07: Gross Wages Equals Excludable Wages For Tax Exempt Employees (Doc ID 2290247.1)

Last updated on MARCH 16, 2020

Applies to:

JD Edwards EnterpriseOne US Payroll - Version 9.0 to 9.1 [Release 9.0 to 9.1]
Information in this document applies to any platform.


When an employee is set up to be tax exempt (both Federal and State) using an exempt Tax Method, their gross wages and excludable wages are updating historical tax records as being the same amount.   It has been determined that Vertex, Inc. reports tax exempt employees in this manner.

Applying the following bugs provides the functionality for exempt employee per Vertex, Inc.

Release Bug
Tax Bugs
9.0 24697270
9.1 25120558

If you have applied the above mentioned bugs and are using a tax exempt tax method (see below), then your historical tax records will now be updated with gross pay and excludable as being the same amount. If you wish to report Gross Wages Less Excludables while still not calculating tax, use a tax override.  The employee set up and associated tax history clean up steps are below.

Tax Method Values (exempt)

Tax Method Description
Tax Methods (Exempt) - P0801US
2 Federal Exempt | Non Statutory
3 State Exempt | Non Statutory
B Only FWT is exempt - US
E US - State Exempt Only
F US - Federal & State Exempt Only (calc local taxes)
X Federal Exempt | Statutory (THTY = ‘S’)
Y State Exempt | Statutory




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