Dynamics Gp W2 Popular Issues And Work Around

Microsoft Dynamics GP Payroll module is sensitive to tax rates and formulae. If you are running payroll in house good recommendation is to be on the latest tax update. If you are on the old version then you have to either update federal and state income taxes manually or use the service from consulting firms who are specializing in tax rates update via SQL scripts. Lets review known issues and how they could be resolved. We begin with the issue of mismatch in Employee and Employer portion of Social Security contribution (4.2% and 6.2% respectively):

1.Social security contribution model was long time considered as the match meaning that employee contributes 6.2% from the gross wage and employer matches or in other words contributes another 6.2% and this amount is not seen to employee. Situation was so stable that some accounting packages, including Great Plains Dynamics implemented the formula where employee and employer contributions percentages are taken from the same record. When in 2011 congress lowered employee contribution from 6.2% to 4.2% Microsoft Dynamics GP was not really ready to this change. It was impossible to fix the issue directly in the table as the formula must of being changed. In late December of 2010 MBS recommended to lower SS contribution percentage to 4.2 for the year 2011. In this case W2 would be OK but employer contribution is not correct. The correction was recommended directly in General Ledger where you simply add 2% for employer contribution. Folks who were in time on versions 2010, 10.0 and 9.0 got tax update which released in late January of 2011. This update included Dynamics.dic meta base logic change. If you are on the release earlier than 9.0, such as 8.0, 7.5, 7.0, 6.0, 5.5 or earlier you have to deal with GL entry level fix

2.W2 with incorrect numbers. Possible scenarios are Payroll batch posting crushes. If something like that happens you should try batch recovery. If it is indication that editing is required and you are trying to open the batch without luck then potentially SQL deletion fix is needed. Record should be removed from two tables: UPR30100 and UPR30300 followed by employee reconciliation and check links for US Payroll tables

3.Employee reconciliation procedure and what it really does. W2 is printed based on employee summary tables. It doesnt look directly to posted transactions. This is why if you remove records from posted transaction table then you have to recalculate summaries. Here is the path: Tools -> Utilities -> Payroll -> Reconcile. Here just select one employee for who you did the fix in SQL and try to print report to see if reconciliation changes the numbers. And when you are OK with the results go ahead and do reconciliation itself. At this point W2 should show correct numbers

4.Editing W2 or how to make fixes when you are short of time. If you do not know what the hell is going on with calculations and you have to mail W2 today then there is shortcut: Tools -> Routines -> Payroll -> Edit W2-s. At this point open Excel and calculate the numbers manually there based on your believe and then print the form for the employee. It should take several minutes and the job should be done

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