--- id: video/mT_0VKqdEzA type: video title: "What's new in Expense Agent: Calculate WHT for Expenses (2026 release wave 2)" summary: "Withholding tax for employee expenses in the Expense Agent (2026 release wave 2): extends vendor withholding tax to employees, with posting groups, thresholds, gross/net calculation and invoice or payment timing. Demoed with a mileage expense, preview posting, employee card and expense category setup." tier: official language: en tags: - withholding tax - expense management - tax posting groups - threshold configuration - employee taxation - expense agent - compliance - gl entries system: finance review: state: reviewed by: opus at: "2026-10-07T22:44:40.362Z" flags: [] generated: at: "2026-10-09T00:29:02.995Z" pipeline: 0.2.0 prompts: extract-video: 1 summarize-video: 2 input_hash: 998a651bc7e5eb047548cb3875b9709bf287148b86c6021907fd2df98e06913a evidence: - kind: video url: https://www.youtube.com/watch?v=mT_0VKqdEzA&t=28s title: "What's new in Expense Agent: Calculate WHT for Expenses (2026 release wave 2)" date: "2026-10-01T00:00:00Z" commit: null t: 28 quote: withholding tax is tax deducted from a so source from vendor or employee payments. - kind: video url: https://www.youtube.com/watch?v=mT_0VKqdEzA&t=120s title: "What's new in Expense Agent: Calculate WHT for Expenses (2026 release wave 2)" date: "2026-10-01T00:00:00Z" commit: null t: 120 quote: This is existing tax posting setup because we already had this earlier for um vendors from previous wave. Now we extended bit holding tax - kind: video url: https://www.youtube.com/watch?v=mT_0VKqdEzA&t=184s title: "What's new in Expense Agent: Calculate WHT for Expenses (2026 release wave 2)" date: "2026-10-01T00:00:00Z" commit: null t: 184 quote: in some situations you are supposed to pay multiple two or three for example state federal tax for some payments. - kind: video url: https://www.youtube.com/watch?v=mT_0VKqdEzA&t=224s title: "What's new in Expense Agent: Calculate WHT for Expenses (2026 release wave 2)" date: "2026-10-01T00:00:00Z" commit: null t: 224 quote: It depends what you want because some situation you want to pay thousand dollars for some uh allowance and you need to pay um - kind: video url: https://www.youtube.com/watch?v=mT_0VKqdEzA&t=457s title: "What's new in Expense Agent: Calculate WHT for Expenses (2026 release wave 2)" date: "2026-10-01T00:00:00Z" commit: null t: 457 quote: if I look into withholding posting setup, you will see I will go to edit list that I have withholding tax posting business posting - kind: video url: https://www.youtube.com/watch?v=mT_0VKqdEzA&t=474s title: "What's new in Expense Agent: Calculate WHT for Expenses (2026 release wave 2)" date: "2026-10-01T00:00:00Z" commit: null t: 474 quote: So now I can choose when to be calculated based on invoice. So this is a moment when I post expense report. So if - kind: video url: https://www.youtube.com/watch?v=mT_0VKqdEzA&t=474s title: "What's new in Expense Agent: Calculate WHT for Expenses (2026 release wave 2)" date: "2026-10-01T00:00:00Z" commit: null t: 474 quote: So everything above uh 1,000 will be taxable withholding tax in 20%. - kind: video url: https://www.youtube.com/watch?v=mT_0VKqdEzA&t=559s title: "What's new in Expense Agent: Calculate WHT for Expenses (2026 release wave 2)" date: "2026-10-01T00:00:00Z" commit: null t: 559 quote: it can be per document but much more in especially related to employees uh withholdings this is category per period or total imperial. - kind: video url: https://www.youtube.com/watch?v=mT_0VKqdEzA&t=701s title: "What's new in Expense Agent: Calculate WHT for Expenses (2026 release wave 2)" date: "2026-10-01T00:00:00Z" commit: null t: 701 quote: It can be used outside expense management but we will have separate session about finance. links: learn: [] objects: [] features: - feature/573304 topics: [] localizations: [] videos: [] posts: [] guidelines: [] video_id: mT_0VKqdEzA channel: yt-microsoft source_name: Microsoft Dynamics 365 Business Central (YouTube) url: https://www.youtube.com/watch?v=mT_0VKqdEzA published_at: "2026-10-01T00:00:00Z" duration_s: 723 captions: full audience: - functional consultant - administrator - partner chapters: - t: 0 title: Withholding Tax Fundamentals and Compliance - t: 104 title: Withholding Tax Posting Setup - t: 143 title: "Setup Configuration: Business and Product Posting Groups" - t: 212 title: Calculation Models and Thresholds - t: 269 title: "Demo: Creating a Mileage Expense" - t: 352 title: "Demo: Withholding Tax Entries Preview" - t: 442 title: "Demo: Withholding Posting Setup Details" - t: 547 title: "Demo: Threshold Calculation Methods" - t: 611 title: "Demo: Employee Card and Expense Category Setup" - t: 676 title: Multiple Tax Groups and Configuration features: - name: Withholding Tax for Employee Expenses status: preview t: 6 verified: false status_source: roadmap roadmap_ids: - "573304" - name: Withholding Posting Setup for Employees status: preview t: 104 verified: false status_source: roadmap roadmap_ids: - "573304" - name: Multiple Withholding Tax Groups per Category status: preview t: 164 verified: false status_source: roadmap roadmap_ids: - "573304" - name: Gross and Net Withholding Tax Calculation status: preview t: 212 verified: false status_source: roadmap roadmap_ids: - "573304" - name: Configurable Withholding Tax Thresholds status: preview t: 212 verified: false status_source: roadmap roadmap_ids: - "573304" - name: Withholding Tax Entries in Preview Posting status: preview t: 352 verified: false status_source: roadmap roadmap_ids: - "573304" - name: Withholding Tax Calculation Timing (Invoice vs Payment) status: preview t: 442 verified: false status_source: roadmap roadmap_ids: - "573304" - name: Employee Card Withholding Tax Fields status: preview t: 611 verified: false status_source: roadmap roadmap_ids: - "573304" - name: Expense Category Withholding Tax Configuration status: preview t: 646 verified: false status_source: roadmap roadmap_ids: - "573304" objects_mentioned: - other Withholding Posting Setup - other Withholding Tax Business Posting Group - other Withholding Tax Product Posting Group - other Withholding Group Code - other Employee Card - other Expense Category quotes: - t: 28 text: withholding tax is tax deducted from a so source from vendor or employee payments. check: exact - t: 120 text: This is existing tax posting setup because we already had this earlier for um vendors from previous wave. Now we extended bit holding tax check: exact - t: 184 text: in some situations you are supposed to pay multiple two or three for example state federal tax for some payments. check: exact - t: 224 text: It depends what you want because some situation you want to pay thousand dollars for some uh allowance and you need to pay um check: exact - t: 457 text: if I look into withholding posting setup, you will see I will go to edit list that I have withholding tax posting business posting check: exact - t: 474 text: So now I can choose when to be calculated based on invoice. So this is a moment when I post expense report. So if check: exact - t: 474 text: So everything above uh 1,000 will be taxable withholding tax in 20%. check: exact - t: 559 text: it can be per document but much more in especially related to employees uh withholdings this is category per period or total imperial. check: exact - t: 701 text: It can be used outside expense management but we will have separate session about finance. check: exact --- # What's new in Expense Agent: Calculate WHT for Expenses (2026 release wave 2) > Withholding tax for employee expenses in the Expense Agent (2026 release wave 2): extends vendor withholding tax to employees, with posting groups, thresholds, gross/net calculation and invoice or payment timing. Demoed with a mileage expense, preview posting, employee card and expense category setup. [Watch on YouTube](https://www.youtube.com/watch?v=mT_0VKqdEzA) · Microsoft Dynamics 365 Business Central (YouTube) · 2026-10-01 · 12:03 · tier official · reviewed (checked by Opus) ## Overview The video explains that withholding tax is tax deducted at source from vendor or employee payments. The existing withholding tax posting setup, introduced for vendors in an earlier wave, is extended so it also applies to employee expenses. The presenter walks through the setup and then demos it. The demo creates a mileage expense and shows the withholding tax entries in preview posting next to the GL entries and employee ledger entries. It then covers the Withholding Posting Setup, the threshold calculation methods, the Employee Card and Expense Category configuration, and how to use multiple tax groups for multi-tier taxes. The presenter says a separate session covers the broader finance withholding tax features. ## Key points - Withholding tax setup that existed for vendors is extended to employees, so employee expense payments can have tax deducted. - Withholding Posting Setup needs both a withholding tax business posting group (assigned on the employee card) and a product posting group (assigned on the expense category). Configuration must match local tax authority rules. - The Employee Card gets a withholding tax business posting group, an option to mark the person as exempt from taxation, and certificate fields that depend on the jurisdiction and are not mandatory. - The calculation base can be gross, net or gross up. When several taxes apply, the calculation can be simple or compound. The choice depends on local rules. - Threshold types include per record or line, per document, category per period, and total in period. For period-based thresholds you choose month, quarter, year or fiscal period. In the demo, mileage above 1,000 is taxed at 20% using a category per period threshold with a monthly period. - Tax can be calculated at invoice time (when the expense report is posted) or at payment time (the withholding stays unrealized until the employee is paid). - An expense category can use single mode for one product posting group, or tax group mode with a withholding group code that holds several product posting groups (for example federal, state and local). Tax group mode also has a component order that sets the sequence in which the system calculates the taxes. ## Chapters - [0:00](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=0s) Withholding Tax Fundamentals and Compliance - [1:44](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=104s) Withholding Tax Posting Setup - [2:23](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=143s) Setup Configuration: Business and Product Posting Groups - [3:32](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=212s) Calculation Models and Thresholds - [4:29](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=269s) Demo: Creating a Mileage Expense - [5:52](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=352s) Demo: Withholding Tax Entries Preview - [7:22](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=442s) Demo: Withholding Posting Setup Details - [9:07](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=547s) Demo: Threshold Calculation Methods - [10:11](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=611s) Demo: Employee Card and Expense Category Setup - [11:16](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=676s) Multiple Tax Groups and Configuration ## Features | Feature | Status | At | |---|---|---| | Withholding Tax for Employee Expenses | preview (roadmap [Calculate withholding tax automatically in expense reports](../features/573304.md)), demoed | [0:06](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=6s) | | Withholding Posting Setup for Employees | preview (roadmap [Calculate withholding tax automatically in expense reports](../features/573304.md)), demoed | [1:44](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=104s) | | Multiple Withholding Tax Groups per Category | preview (roadmap [Calculate withholding tax automatically in expense reports](../features/573304.md)), demoed | [2:44](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=164s) | | Gross and Net Withholding Tax Calculation | preview (roadmap [Calculate withholding tax automatically in expense reports](../features/573304.md)), demoed | [3:32](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=212s) | | Configurable Withholding Tax Thresholds | preview (roadmap [Calculate withholding tax automatically in expense reports](../features/573304.md)), demoed | [3:32](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=212s) | | Withholding Tax Entries in Preview Posting | preview (roadmap [Calculate withholding tax automatically in expense reports](../features/573304.md)), demoed | [5:52](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=352s) | | Withholding Tax Calculation Timing (Invoice vs Payment) | preview (roadmap [Calculate withholding tax automatically in expense reports](../features/573304.md)), demoed | [7:22](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=442s) | | Employee Card Withholding Tax Fields | preview (roadmap [Calculate withholding tax automatically in expense reports](../features/573304.md)), demoed | [10:11](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=611s) | | Expense Category Withholding Tax Configuration | preview (roadmap [Calculate withholding tax automatically in expense reports](../features/573304.md)), demoed | [10:46](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=646s) | A status with a roadmap link comes from the Microsoft 365 roadmap feature this part of the video covers (matched by Haiku; links Opus dropped are not used); other statuses need a status word in the video itself. ## AL objects mentioned As heard in the captions. A name that matches one object page by exact type and name links to it; the others stay as named. - other "Withholding Posting Setup" at [7:37](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=457s) - other "Withholding Tax Business Posting Group" at [7:37](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=457s) - other "Withholding Tax Product Posting Group" at [7:37](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=457s) - other "Withholding Group Code" at [11:05](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=665s) - other "Employee Card" at [10:11](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=611s) - other "Expense Category" at [10:46](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=646s) ## Quotes - [0:28](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=28s) "withholding tax is tax deducted from a so source from vendor or employee payments." - [2:00](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=120s) "This is existing tax posting setup because we already had this earlier for um vendors from previous wave. Now we extended bit holding tax" - [3:04](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=184s) "in some situations you are supposed to pay multiple two or three for example state federal tax for some payments." - [3:44](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=224s) "It depends what you want because some situation you want to pay thousand dollars for some uh allowance and you need to pay um" - [7:37](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=457s) "if I look into withholding posting setup, you will see I will go to edit list that I have withholding tax posting business posting" - [7:54](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=474s) "So now I can choose when to be calculated based on invoice. So this is a moment when I post expense report. So if" - [7:54](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=474s) "So everything above uh 1,000 will be taxable withholding tax in 20%." - [9:19](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=559s) "it can be per document but much more in especially related to employees uh withholdings this is category per period or total imperial." - [11:41](https://www.youtube.com/watch?v=mT_0VKqdEzA&t=701s) "It can be used outside expense management but we will have separate session about finance."