What is the valid tax method to Exempt State Taxes?

After installing ESU JN18044, I need to find out the valid Tax Method to use for State Tax Exemption. Based on the attached Tax Methods document, I thought E would be the correct code, but it does give a taxable gross amount. It shows it as excludable wages. The documents shows "State/F gross updated creating taxable gross but zero tax."

G - Exempt's both Federal and State, shows taxable gross wages for both in tax detail.

I - Exempts Federal Taxes, calculates state taxes, shows taxable wages on both.

E - Exempts State Taxes, shows no taxable gross wages; calculates Federal Taxes showing gross wages