This status indicates how the employee is filing for this tax. The status may be Married, Single, 1, 2, Rate Table A, etc. This code varies depending on the tax you are assigning to the individual, since states may have codes that are different from federal. The value in this column must match a Tax Type on the Tax Control table in order for it to be withheld.
You may want to print a list of the Tax Control table rows before you begin entering Tax Filing Status values for employees.