---
id: feature/573308
type: feature
title: Use withholding taxes (WHT) with employee transactions
summary: "Finance: Use withholding taxes (WHT) with employee transactions. In preview, GA 2027-01 (Microsoft 365 roadmap). This feature extends withholding tax capabilities to include employee transactions. The feature supports scenarios where employee-related payments or reimbursements are subject to withholding tax requirements and ensures that you accurately process the transactions in the financial system. Key capabilities include: Apply withholding tax rules to employee transactions. Automatically calculate withholding tax amounts based on configured tax setups."
tier: official
language: en
system: finance
tags:
  - finance
review:
  state: derived
  by: null
  at: null
  flags: []
generated:
  at: "2026-10-07T23:41:05.192Z"
  pipeline: 0.2.0
  prompts: {}
  input_hash: 74458da9f2ec6f8e4dac951c4688cc7cabe7d7d49d36ebdfdbd7b52c62c53b69
evidence:
  - kind: roadmap
    url: https://www.microsoft.com/microsoft-365/roadmap?id=573308
    title: Microsoft 365 roadmap 573308
    date: "2026-09-30"
    commit: null
    t: null
    quote: null
  - kind: video
    url: https://www.youtube.com/watch?v=N_J1HB_fUCM&t=375s
    title: "What's new in Finance: Overview (2026 release wave 2): Withholding tax for employees"
    date: null
    commit: null
    t: 375
    quote: null
  - kind: learn
    url: https://learn.microsoft.com/dynamics365/business-central/finance-set-up-withholding-tax
    title: Set up withholding tax
    date: null
    commit: null
    t: null
    quote: null
  - kind: learn
    url: https://learn.microsoft.com/dynamics365/business-central/finance-withholding-tax-employees
    title: Set up and post employee withholding tax
    date: null
    commit: null
    t: null
    quote: null
  - kind: learn
    url: https://learn.microsoft.com/dynamics365/business-central/finance-withholding-tax-entries
    title: View withholding tax entries
    date: null
    commit: null
    t: null
    quote: null
links:
  learn:
    - https://learn.microsoft.com/dynamics365/business-central/finance-set-up-withholding-tax
    - https://learn.microsoft.com/dynamics365/business-central/finance-withholding-tax-employees
    - https://learn.microsoft.com/dynamics365/business-central/finance-withholding-tax-entries
  objects: []
  features: []
  topics: []
  localizations: []
  videos:
    - video/N_J1HB_fUCM
  posts: []
  guidelines: []
roadmap_id: "573308"
wave: 2026 release wave 2
status: preview
roadmap_status: In development
release_phase: General Availability
ga_date: 2027-01
preview_date: 2026-10
area: Finance
whatsnew_url: null
localizations: []
objects_touched: []
---

# Use withholding taxes (WHT) with employee transactions

> Finance: Use withholding taxes (WHT) with employee transactions. In preview, GA 2027-01 (Microsoft 365 roadmap). This feature extends withholding tax capabilities to include employee transactions. The feature supports scenarios where employee-related payments or reimbursements are subject to withholding tax requirements and ensures that you accurately process the transactions in the financial system. Key capabilities include: Apply withholding tax rules to employee transactions. Automatically calculate withholding tax amounts based on configured tax setups.

[Microsoft 365 roadmap 573308](https://www.microsoft.com/microsoft-365/roadmap?id=573308) · Finance · in preview · roadmap status "In development", phase General Availability

## What Microsoft says

This feature extends withholding tax capabilities to include employee transactions. The feature supports scenarios where employee-related payments or reimbursements are subject to withholding tax requirements and ensures that you accurately process the transactions in the financial system. Key capabilities include: Apply withholding tax rules to employee transactions. Automatically calculate withholding tax amounts based on configured tax setups. Maintain consistent tax treatment across vendor and employee transaction processing. When someone creates an employee transaction, the system finds the applicable withholding tax configuration and applies the relevant withholding tax treatment. This capabililty enables organizations to meet local tax requirements for employee-related payments while keeping financial records accurate and compliant.

## Dates

- General availability: January CY2027 (2026 release wave 2)
- Public preview: October CY2026
- On the roadmap since 2026-09-30, last changed 2026-09-30

## Covered by

Matched by Haiku among videos and Learn pages in the same galaxy system, checked against the roadmap ids and the evidence text. Every link below was reviewed by Opus.

### Videos

- [What's new in Finance: Overview (2026 release wave 2)](../videos/N_J1HB_fUCM.md): Withholding tax for employees at [6:15](https://www.youtube.com/watch?v=N_J1HB_fUCM&t=375s)

### Microsoft Learn

- [Set up withholding tax](https://learn.microsoft.com/dynamics365/business-central/finance-set-up-withholding-tax)
- [Set up and post employee withholding tax](https://learn.microsoft.com/dynamics365/business-central/finance-withholding-tax-employees)
- [View withholding tax entries](https://learn.microsoft.com/dynamics365/business-central/finance-withholding-tax-entries)

Source: Microsoft 365 roadmap. Status words follow the roadmap.