diff --git a/l10n_us_hr_payroll/models/us_payroll_config.py b/l10n_us_hr_payroll/models/us_payroll_config.py
index 8e85f7e1..baceae6c 100644
--- a/l10n_us_hr_payroll/models/us_payroll_config.py
+++ b/l10n_us_hr_payroll/models/us_payroll_config.py
@@ -226,6 +226,7 @@ class HRContractUSPayrollConfig(models.Model):
     ], string='New Jersey Wage Chart Letter', help='NJ-W4. 3.')
 
     ny_it2104_sit_filing_status = fields.Selection([
+        ('', 'Exempt'),
         ('single', 'Single'),
         ('married', 'Married'),
     ], string='New York NY IT-2104 Filing Status', help='NY IT-2104')
diff --git a/l10n_us_hr_payroll/tests/test_us_ny_new_york_payslip_2019.py b/l10n_us_hr_payroll/tests/test_us_ny_new_york_payslip_2019.py
index 973ea5ba..2c3b9306 100644
--- a/l10n_us_hr_payroll/tests/test_us_ny_new_york_payslip_2019.py
+++ b/l10n_us_hr_payroll/tests/test_us_ny_new_york_payslip_2019.py
@@ -104,3 +104,30 @@ class TestUsNYPayslip(TestUsPayslip):
 
         self.assertPayrollEqual(cats['EE_US_SIT'], wh)
 
+    def test_exempt_example3(self):
+        salary = 50000
+        schedule_pay = 'monthly'
+        allowances = 3
+        additional = 0
+        filing_status = ''
+        wh = 0.0
+
+        employee = self._createEmployee()
+
+        contract = self._createContract(employee,
+                                        wage=salary,
+                                        state_id=self.get_us_state('NY'),
+                                        ny_it2104_sit_filing_status=filing_status,
+                                        state_income_tax_additional_withholding=additional,
+                                        ny_it2104_sit_allowances=allowances,
+                                        schedule_pay=schedule_pay)
+
+        self._log('2019 New York tax first payslip:')
+        payslip = self._createPayslip(employee, '2019-01-01', '2019-01-31')
+
+        payslip.compute_sheet()
+
+        cats = self._getCategories(payslip)
+
+        self.assertPayrollEqual(cats['EE_US_SIT'], wh)
+
diff --git a/l10n_us_hr_payroll/tests/test_us_ny_new_york_payslip_2020.py b/l10n_us_hr_payroll/tests/test_us_ny_new_york_payslip_2020.py
index 763bd67d..b2b039b5 100644
--- a/l10n_us_hr_payroll/tests/test_us_ny_new_york_payslip_2020.py
+++ b/l10n_us_hr_payroll/tests/test_us_ny_new_york_payslip_2020.py
@@ -36,3 +36,4 @@ class TestUsNYPayslip(TestUsPayslip):
         self._test_sit(50000.0, 'single', 0.0, 3, 'monthly', date(2020, 1, 1), 3575.63)
         self._test_sit(50000.0, 'married', 0.0, 3, 'monthly', date(2020, 1, 1), 3619.82)
         self._test_sit(50000.0, 'married', 10.0, 3, 'monthly', date(2020, 1, 1), 3629.83)
+        self._test_sit(50000.0, '', 0.0, 0, 'monthly', date(2020, 1, 1), 0.00)