Dynamics Gp Fica Issues In Payroll Module And Tax Tables Update Options

Dynamics Gp Fica Issues In Payroll Module And Tax Tables Update Options

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Lets begin with historical introduction. Traditionally in the United States Employee and Employer contributions to social security fond were equal: FICA and Medicare. When Great Plains Dynamics US Payroll module was introduced back in mid 1990th the same fields was used to calculate and accrue Medicare and FICA portions for both employer and employee. If you are using old version of Dynamics GP please take a look at UPR41302 table and the rows FICAS and FICAM. What you should expect to find there are percentages: 6.2 and 1.45 percent respectively. These percentages were long time outside of the scope for federal payroll legislating activities. However the idea to help struggling employees and encourage them to spend extra dollars in late 2010 legislators decided to reduce employee FICA contribution into Social Security fund while keeping employer contribution unchanged. This legislation resulted in complex dilemma for GP development team at Microsoft Business Solutions. Lets take a look at what was done and how to deal with the problem to somebody who is on old Great Plains or Dynamics GP version:

1.W2, W4 forms and decision. In order to keep W2 form correct natural decision is to change percentage in the field responsible for employer and employee contribution to the employee contribution percentage. However each Payrun would show underpaid amount for employer contribution. The way to be in compliance is to make correction in General Ledger and pay employer portion based on the employer social security liability account. Microsoft issued recommendation in late December of 2010 allowing customers face first payrun in 2011 armed by work around procedure. Regular payroll tax update for 2011 Round 1 implemented this idea. In order to decouple employee and employer social security portion Microsoft developers were working hard first two decades of the January and 2011 Tax Update Round 2 was released in the third decade. Round 2 included change in Dynamics.dic business logic meta dictionary. Dexterity business logic is now looking at FICAS (old field as it was since the introduction of Payroll module in mid 1990th) and EFICS (newly introduced field for employer portion, it was not present in the past and here is where changes to Dexterity Dynamics.dic business logic was required)

2.What to do if you are on old version? It would be fine if payroll tax update would be available for all historical versions of Great Plains. However there are only two or three recent versions where Microsoft is releasing tax update. If you are on version 2010 or 10.0 at this time of January of 2012 you are covered as these versions are supported. Lets take a look at old versions

3.9.0. Support expired in the first half of 2011. However tax update for 2011 Round one and two were released. You should consider applying Round 2 and then keep updating tax tables manually or have your consulting partner update them from the tax tables of the supported releases

4.Earlier versions such as 8.0, 7.5, 7.0, 6.0, 5.5 and 5.0 and even earlier ones. Here you have to accommodate your payroll department the idea to do employer FICA correction on the General Ledger level and keep updating State and Municipality tax percentages manually or via SQL update synchronizing them with current version. Automatic update is available through Alba Spectrum or feel free to contact your VAR

5.Some information about Great Plains DOS Payroll module. Here you do not have the issue described in this publication. Keep updating tax tables manually as you would be doing in the past

6.For additional information, please feel free to call us 1-866-528-0577 or 1-630-961-5918 (this number works for international customers) or email us help@albaspectrum.com We serve you USA/Canada nationwide via remote support (web sessions and phone/Skype conferences). Local service is available in Western Michigan, Chicagoland, Southern California (LA, Orange County and San Diego), Houston area of the state of Texas

About the Author:
Andrew Karasev, http://www.albaspectrum.com Great Plains Dynamics GP and eEnterprise Certified Master, Microsoft MVP and consultant with 15 years and plus experience and expertise. Alba Spectrum, 1-866-528-0577, help@albaspectrum.com. If you are thinking implement Dynamics GP in challenging environment, we recommend you to give us a call



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