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In US Payroll, what is the difference between Subject to Withheld and Subject to Not Withheld

in Payroll and OTL - EBS (MOSC) Question

In US Payroll, in the Tax Witholding Rules window, for Federal and State taxes, we have the option to configure the taxation rule as either Not Withheld or Withheld.

Can someone please explain the difference between the two ? If you can point me to some Oracle Notes / Document which explains the functionality will also help?

Thanks,

-Debo

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