Microsoft has announced the release schedule and the details of their Round 2 Tax Table Update for Dynamics GP. This update will provide for the proper withholding rates for both Employer (6.2%) and Employee (4.2%) for 2011. For additional details, please contact your TMC Project Manager or TMC Consultant.
Supported versions
– Dynamics GP 9.0, GP 10.0, and GP 2010
– 9.0 Small Business Financials
Release Dates
– 2010 Year End Update –Released 11/18/2010
– 2011 Tax Update (Round 1) – Released 12/22/2010
– Table Update only –Federal, FICA Employee & States
– 2011 Tax Update (Round 2) – Target release 1/24/2011
– Table and code update – FICA Employer & States
Important Note: The FICA/Social Security withholding changed for employees from 6.2% to 4.2% in 2011. Round 1 included the change to both the Employee and Employer portion due to Microsoft Dynamics GP calculation being based from one amount. Due to this, General Ledger posting, inquiries and reports that show FICA amounts for employers will be calculated using 4.2% for pay runs that are processed with Round 1. Round 2 Tax Update will include changes to the employer portion to bring back to 6.2%. We understand the challenges you face with this: however, it was important to release with accurate employee paychecks starting January 1, 2011.
2010 Payroll Year End Tips
– All 2010 reports (especially 941) should be printed with 2010 tax tables installed.
– 2010 Tax tables should be installed when you create the 2010 year end wage file or FICA rate should be at 6.2
– Temporarily edit tax tables to (2010) FICA rate.
Microsoft Dynamics GP – Tools – Setup – System – Payroll Tax. Choose FICAS, Click Filing Status
Select NA as the filing status
Click tables
Edit the 4.2 to 6.2
– HIRE Act will automatically stop when user date in 2011
– Recommend to leave HIRE Act employees marked
2011 Round 1 Tax Table Update
– Advanced Earned Income Credit
– Federal
– FICA Employee / Employer rate at 4.2 (not 6.2)
The following States were updated in Round 1:
– Alabama
– California
– Kentucky
– Michigan
– Minnesota
– New York City
– Puerto Rico
– Rhode Island
2011 Payroll Processing Tips
– All employees paid correctly with FICA rate at 4.2.
– If over-withheld pay back employees by 3/31/2011 with a business expense pay code and adjust FICA withheld through manual checks.
– Until Round 2 releases
– Adjust General Ledger Employer Liability – 4.2 posted
– Calculate additional amount on tax deposit
2011 Round 2 Tax Table Update
– FICA Employer 6.2 / Employee 4.2
– Arizona
– Colorado
– Hawaii
– Missouri
– New Mexico
– North Dakota
– Oklahoma
– Oregon
– Vermont
2011 Round 2 Tax Code Update
– The following tables will have new fields added:
UPR30100 – check history
UPR30200 – tax liability
UPR10202 – work header
UPR10308 – manual check
– Utilities process will populate the employer liability fields for the 2011 payrolls (this will correct payroll reports)
– 941 form not final yet, draft format
– Payroll Tax Setup new codes EFICS & EFICM
– Install will be .msp/.exe file and cumulative, install on each machine.
– Redesign the Payroll Federal Liability window & report
– Employer field added to manual checks
2011 Round 3 Tax Table Update
– Maryland
– Maine
