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State Tax Withholding for Residents of Puerto Rico

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Units outside of PR: Members with PR as the home of record, please ensure Federal taxes are changed to "none" under the "Special Tax Withholding." Change state tax to "Do Not Maintain Taxable Gross and Do Not Withhold Tax" under the "Special Tax Withholding".

Units within PR: Members with home of record of PR, stationed in PR should not have federal wages reported. Ensure Federal taxes are set to "Do Not Maintain Taxable Gross and Do Not Withhold Tax" under the "Special Tax Withholding". Ensure State tax is set to "None" under the "Special Tax Withholding" block.

See: State Tax Withholding Exceptions for examples of state tax data entry. And remember, always begin a withholding change (Federal or State) by inserting a new row on the Federal Tax Data tab. Do not insert new rows on the State Tax Tab. See: State Tax Withholding Procedures for more information.


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