Can I opt out from tax withdrawals when submitting payrolls?

Updated January 09, 2026 19:04

Question

With 7shifts Payroll, can employers opt out of automatic tax deductions when submitting a payroll run?

Answer

⚠️ Important: 7shifts cannot prevent tax withdrawals once a payroll run is submitted. Taxes are calculated based on employee W-4 details and the 7shifts account tax setup.

No, at this time employers cannot opt out of automatic tax withdrawals when submitting a payroll run in 7shifts. The following amounts will always be withdrawn from the employer bank account:

Employee taxes (for both direct deposit and manual checks)
Employer taxes (for both direct deposit and manual checks)
Direct deposit employee payments

Note: If incorrect or incomplete Tax IDs are entered during setup, the taxes may be refunded to the employer at the end of the quarter. In this case, the employer is required to remit payment directly to the tax agency.