a Wage category, click Exempt and select the taxes and deductions that do not apply to the new category
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an Entitlement category (and you have selected a percentage of gross wages as the type of entitlement), click Exempt and exclude those wage categories that should not be included in the entitlement calculation
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a Deduction category, click Exempt and select the taxes that should be applied only to net pay (that is, to gross pay less the deduction amount)
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an Expense category (and you have selected a percentage of gross wages as the expense basis), click Exempt and choose the wage categories that will not contribute to the value of the expense.
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Click OK twice. A payroll category information window appears.