Why does my pay statement reflect $0 being withheld for Federal or State taxes? You either checked “EXEMPT” when completing your Federal and/or Vermont W4 or you listed a large number of exemptions on your W4 causing $0 to be withheld. If you are not exempt from Federal/State taxes and do need to have taxes withheld from your pay, log in to ESS and update your W4 withholding as soon as possible. If you need assistance, contact a VTHR Payroll Specialist at (802) 828-6700.