What's new in Expense Agent: Calculate WHT for Expenses (2026 release wave 2)

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.

Features

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
• other “Withholding Tax Business Posting Group” at 7:37
• other “Withholding Tax Product Posting Group” at 7:37
• other “Withholding Group Code” at 11:05
• other “Employee Card” at 10:11
• other “Expense Category” at 10:46

Quotes

• 0:28 “withholding tax is tax deducted from a so source from vendor or employee payments.”
• 2:00 “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 “in some situations you are supposed to pay multiple two or three for example state federal tax for some payments.”
• 3:44 “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 “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 “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 “So everything above uh 1,000 will be taxable withholding tax in 20%.”
• 9:19 “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 “It can be used outside expense management but we will have separate session about finance.”