Foreign Earned Income Exclusion
We currently have employees that have filled out IRS form 673 - Statement for claiming exemption from withholding on foreign earned income eligible for the exclusion. Each year there is a maximum wage in which federal withholding is not required. For 2018, this earnings maximum is 104,100. Is there a tax method which will track this and not withhold on the annual limit, then begin withholding once it is met? Fica and Medicare are not exempt.
Thank you!