See previous thread below.  I had marked an employee that changed their W-4 this past quarter's last pay period to Exempt for FWT & SWT.  The Company Totals did not reflect the pay in FWT and SWT totals; however, the full gross amount paid for this employee is in the 941 Taxable totals and is showing in the W-2 totals.  Is this correct?  When an employee claims "Exempt" would it be better to have them put an unusually high number of allowances to accomplish the same thing and therefore allow the Company totals and Tax Reports to match?

is is the first time we've had an employee claim exempt from state and federal withholding.  We marked him as exempt under status in Maintain Employees.  His wages do not show up in FWT Taxable Pay on the Company Totals Report which is what we match to the 941 report.  I understand the employee is saying he doesn't have taxable wages but I would think the software would total everyone up like they did have them.  Is this right?