Posts Tagged ‘Payroll update’

What happens if I update Payroll tax tables and…

Hello all, here is something I was asked recently:

“I have processed my 2012 payrolls for the year, my IT is always on the latest and greatest regarding service packs, hotfixes, updates etc, and they installed the 2013 payroll tax tables update, and I have not executed the Payroll Year End, can I close it anyway?”

Short answer: Yes you can close it, but it will be incorrect.

Please if this happens to you, make sure to restore the Dynamics DB prior to the install of the payroll tax table update because I am sure you always do a backup of your databases prior to any updates installed right?

Leslie Vail has a post from 2011 where she explains how FICA/S wages and withholding is calculated Leslie’s Post

NOTE FOR LESLIE (Step 5b says “he year-end” instead of “the year-end”Smile)

But I wanted to provide a graphical representation of it

01-09-2013 12-21-51 PM

 

Until my next post…

 

Francisco G. Hillyer

It’s here again: Year End Processes 2012

So just like every year we go thru similar steps, I am providing some help along the way, 598846_4784214609951_774409899_nmany of the processes described here belong to a published KB from Microsoft as well links to posts from other resources but I wanted you to have them all in one place.

Please note that some of the links require you to have access to Customersource/Partnersource.

 

Difference between Year End Update and Payroll Tax Table Updates

The Year End Update download contains software changes to allow you to comply with 2012 filing requirements as well as the most recent fixes for your Dynamics application.

The 2013 Payroll Tax Table Updates contains updated rates and tax changes as well it might contain FICA/Medicare changes to be applied when processing 2013 payrolls.

Here is the link for the 2012 US Payroll Year End Update: Click Here

Here is the link for the US Payroll Tax Updates: Click Here

It is important to mention that you can install the Year end update prior to your last payroll for 2012, however do not install the Tax table updates before your last 2012 payroll as you might end up with a wrong calculation.

Always backup your data, your .DIC files as well.

 

Setting up / Adjusting Fiscal Periods in GL

Microsoft provides a KB article number 871679 KB871679

 

Closing Dynamics GP GL

STEP 1: CLOSE ALL OTHER MODULES

Complete the posting/closing procedures for the modules in the suggested order prior to closing GL, please note that if you are not using a particular module, just skip it:

Follow the instructions provided in each KB

Inventory: KB 872713

Receivables Management: KB 857444

Payables Management: KB 875169

Fixed Asset Management: KB 865653

Analytical Accounting:

For Microsoft Dynamics GP 10.0 Service Pack 2 and greater, functionality was added to consolidate balances for dimensions in Analytical Accounting. Please review KB 960356 to make sure you have properly marked the dimensions that you want to be consolidated  during the year-end process. Please note that there is no separate year-end process that needs to be run in the Analytical Accounting module. When the year-end close process is run for General Ledger, it will automatically consolidate the balances and move the transactions in Analytical Accounting for dimensions that were properly marked.

PAYROLL year end procedures are independent of the procedures in other modules and are usually performed at the end of the calendar year. Please see this KB 850663

STEP 2: POST FINAL ADJUSTING ENTRIES

Adjusting entries are considered most of the time as entries that allow you to correct errors that were made when transactions were recorded as well they might be utilized to assign revenues or expenses to period or periods in which revenues were earned or expenses incurred.

If you need to in setup or adjust your fiscal periods in GP, please review the section “Setting up / Adjusting Fiscal Periods in GL” at the beginning of this article.

STEP 3: VERIFY ACCOUNTS POSTING TYPE

The posting type helps Dynamics GP determine whether an account will be closed to the retained earnings account or if the account balance will be brought forward to the next fiscal year.

Follow these steps to print an account list:

  1. On the Reports menu, point to Financial, and then click Account.
  2. In the Reports list, select All Accounts, and then click New.
  3. In the Option box, type all accounts.
  4. Click to select the Inactive Accounts check box. (if you want to delete inactive accounts)
  5. Click Destination to specify a report destination, and then click OK.
  6. Click Print.
STEP 4: CLOSE FISCAL PERIODS FOR 2012 (OPTIONAL)

Use the fiscal periods setup window to close all fiscal periods open for the 2012 year. This will prevent transactions from posting to the wrong period or the wrong year.

NOTE: If you still use Microsoft FRx, keep one period in the most recent historical year open to prevent the error: “FRX Print Engine Failed to Load the Company Calendar” see this KB 874932

STEP 5: PERFORM MAINTENANCE ON FINANCIAL SERIES (OPTIONAL)

Run the check links procedure on the financial series group of modules.

Make sure that you always have a backup and that you can confirm you can restore from it.

STEP 6: VERIFY SETTINGS IN GL SETUP WINDOW

If you are like me and always want to keep historical records, you must enable the checkbox next to Accounts and Transactions in the Maintain History area of the General Ledger Setup Window.

NOTE: If for some reason you have the checkbox enabled for “Close to Divisional Segments” and you are no longer closing to Divisional Segments or by mistake someone else enabled it and not using it pay attention:

I have discovered in the past a BUG in dynamics GP that is still there as I reported in this blog in August 14, 2012, if you would like to read more about this important step please click here: YEAR END CLOSE BUG 64711

STEP 7: MAKE ANOTHER BACKUP (OR BACKUP IF YOU HAVE NOT)

Make sure all users are out of the system

Remove stranded user sessions, you can follow this post Removing Stranded Sessions

Backup DYNAMICS database

Backup all company databases if you are unsure which databases to backup you can query the company master table (SY01500) and retrieve the names, the following script can help you determine that information.

select INTERID, CMPNYNAM from dynamics..sy01500

Make sure to backup as well the Dynamics GP code folder

STEP 8: PRINT A TRIAL BALANCE REPORT (OPTIONAL)

Use the Trial Balance report window to print a year end detailed trial balance report. Even when this step is optional it is highly recommended to be followed.

STEP 9: PRINT YEAR END FINANCIAL STATEMENTS (MR, FRx, Other)

Print any year end financial statements that are required. The most common are:

  • Balance Sheet
  • Profit and Loss Statement
  • Statement of Cash Flows
  • Statement of Retained Earnings
STEP 10: SETUP A NEW FISCAL YEAR

Before you can perform the year end closing routine, you must setup a new fiscal year, please follow the instructions on the section at the top of this article to Setup or Adjust Fiscal Periods.

STEP 11: CLOSE THE YEAR
  • Click on the Microsoft Dynamics GP Menu > Tools > Routines > Financial > Year End Closing.
  • If its not specified, you can key in the Retained Earnings Account.
  • Optional: Specify the Starting Journal Entry
  • Click on Close Year
STEP 12: BACKUP YOUR SYSTEM

Make another backup of the Dynamics DB and all the company Databases.

 

Thank you for reading I would like to mention that this post enhances Microsoft KB 888003 

 

Until my next post

Francisco G. Hillyer

Payroll year end update for Dynamics GP 10 and 2010

Just in from Terry Heley.

MBS has released their Year End update for GP 10 and 2010. See links below.

As a word of caution. I’d wait a while before jumping on the update wagon. I’ve found over the years that if you wait for a while everyone else will work out the inevitable quarks with any update.

***********************

Microsoft Dynamics GP 2010 – 11.0.1860

Year-end page, live in 1 hour

https://mbs.microsoft.com/customersource/downloads/taxupdates/usgpye2010.htm?printpage=false

Direct link(get it now) —- MicrosoftDynamicsGP11-KB2599505-ENU.msp

https://mbs2.microsoft.com/fileexchange/?fileID=9dbf6526-a035-4294-b8c7-20476b166cd7

Microsoft Dynamics GP 10.0 – 10.0.1779

Year-end page, live in 1 hour

https://mbs.microsoft.com/customersource/downloads/taxupdates/usgpye10.htm?printpage=false

Direct link(get it now) —– MicrosoftDynamicsGP-KB2599501-v10-ENU.exe

https://mbs2.microsoft.com/fileexchange/?fileID=d33159ca-14b2-4f96-81d2-aca4af914978

Please make note of this 10 information J (also noted on our pages)

Microsoft will provide a 2012 Year-End Update to all U.S and Canadian Microsoft Dynamics GP 10.0 Customers. Microsoft will also provide Round 1 U.S. tax tables for the 2013 Payroll reporting year. Following these releases, no additional code update will be released for Microsoft Dynamics GP 10.0, due to end of Mainstream Support in the Support Lifecycle for Microsoft Dynamics GP 10.0. Technical support for Microsoft Dynamics GP 10 will continue to be provided through the Extended Support phase which will end on 10/10/2017. If you are currently using Microsoft Dynamics GP 10.0, you must upgrade to Microsoft Dynamics GP 2010 or Microsoft Dynamics GP 12 (Due to release in December 2012) to receive any further regulatory and or code updates following the January 2013 Round 1 Tax Update.

Also, new this year a year-end video!!! This goes with the slides I have attached.

https://mbs2.microsoft.com/fileexchange/?fileID=d4485b9c-39e7-4389-a756-501a019b9f31

**************

Thanks Terry.

Payroll Garnishments – Tax Levies

Over the years, you learn where to obtain good, useful information.  You also learn who provides consistent, accurate and helpful commentaries on difficult subjects.  Terry Heley, Escalation Engineer, at Microsoft is one of those people.  Terry has been managing Microsoft Dynamics GP payroll code and tax updates for a long time.  She is also the most knowledgeable person I know of when it comes to Microsoft Dynamics GP payroll issues.  I recently had a difficult garnishment setup situation for one of our customers.  After a considerable amount of frustration and trial and error, I reached out to Terry for any insight she may have on our garnishment problem.   She provided me with a set of examples outlining garnishment setups for tax levies, child support, creditor garnishments, garnishments taken before child support and multiple garnishments with previous marked.  As they say, a picture is worth a thousand words.  Well, when it comes to garnishments, an example is even better than a picture.  Below is the first of a series I will be posting about setting up garnishments in Microsoft Dynamics GP.  Thank you Terry.

Garnishments-Tax Levies:

A federal tax levy is accomplished by ‘garnishing’ an employee’s wages to the extent that they are not exempt from the levy.  For example, there may be a tax levy that is for $25,000.  The tax levy deduction will be taken from the employees ‘take-home pay’ until it reaches the exempt amount.

The exempt amount is an amount that comes from the table (after looking at form 668-W that the employee fills out – (according to the number of exemptions, the pay period, and the filing status)).

The ‘take-home pay’ will be calculated as Wages, minus all Taxes and Deductions (both voluntary and involuntary) that were in effect at the time of receiving the tax levy.  Once an employee’s take-home pay has been determined, all but the exempt amount is subject to the levy.

Any new payroll deductions that are initiated by the employee after the levy has been received by the employer must be deducted from the exempt amount when determining the employee’s net pay, unless they are required as a condition of employment.  (This also includes increases in elective deductions such as a 401k.)

It looks like Tax Levies are always an amount (by looking at the form 668-W).

Ex:  Employee Arthur receives $1,211.54 every two weeks.  On Aug 1, 2010, the employer receives form 668-W stating that a federal tax levy was being issued against Arthur’s wages for $25,000.  Arthur claimed married filing jointly with 3 personal exemptions on Part 3 of the form.  (The exempt amount taken from the table is $657.69.)  As of Aug 1, Arthur had the following deductions:

Federal income tax $44.44
Social security tax 50.88
Medicare tax 17.57
State income taxes 30.00
401(k) plan (3% of salary) 36.35
Health insurance (after tax) 45.00
Total: $224.24

Prior to the Tax Levy, Arthur’s take-home pay is $987.30 ($1,211.54 – $224.24).  The exempt amount of Arthur’s take-home pay (taken from the table) is $657.69.  Therefore, the amount subject to the tax levy is $329.61 ($987.30 – $657.69).  And the take home pay after the Tax Levy is $657.69.

How would we set up this deduction?

In Employee Deduction Maintenance
Deduction Type: Garnishment
Original Amount $25,000
Method: Fixed Amount
Garnishment Category: Tax Levy
Amount $25,000
Percent N/A
Earnings N/A
Maximum Deduction Codes
Federal FEDLEVY (this is just an example)
State N/A

In Garnishment Maximum Setup
Code: FEDLEVY
State/Fed FED
Method Percent of Earnings
Max Withholding Percent 100%
Max Exempt Amount $657.69 (This is the amount taken from the table)
Min Wage Rule Amount $0
Earnings Code FEDLEVY

In Earnings Setup
Code: FEDLEVY
Include in Earnings
Pay Codes All
Deductions 401(k) & Health Insurance (According to the info we have about Federal Tax Levies, it should be all deductions that are being taken at the time the tax levy was issued.  New deductions after the tax levy is in place would not be included.)
Taxes All Checkboxes Marked

Pay code

Other Deductions

Calculate Checks report

Recap

Prior to the Tax Levy, Arthur’s take-home pay is $987.30 ($1,211.54 – $224.24).  The exempt amount of Arthur’s take-home pay (taken from the table) is $657.69.  Therefore, the amount subject to the tax levy is $329.61 ($987.30 – $657.69).  And the take home pay after the Tax Levy is $657.69.

U.S. Payroll – March Round 4 Tax Update for GP 2010 including 941 2011 format….released!

Its finally here, the long waited update from Dynamics GP team for payroll has been released.

 

Here is the link to the direct download:

https://mbs2.microsoft.com/fileexchange/?fileID=2bbdbe6a-9214-4a59-9ff6-62b128ac26a3

U.S. Payroll Tax Update for Microsoft Dynamics GP 2010 (Round 4)
This page contains the latest U.S. Payroll Tax Update for Microsoft Dynamics GP 2010.

https://mbs.microsoft.com/customersource/downloads/taxupdates/tugp2010.htm?printpage=false

 

Here are the updated version numbers

Microsoft Dynamics GP

11.0.1708

Project Accounting

11.0.1699

Manufacturing

11.0.1700

Human Resources

11.0.1697

Field Service

11.0.1696

Grant Management

11.0.1693

Dynamics Online Services

11.0.1694

The automatic tax update site is available.

 

If you have employees paid in the state of Oregon, you need to install the tax update and the code update…major changes in their tax structure…there is also a new filing status for Oregon, so read the instructions if you are in Oregon carefully, please.

Thanks THeley…

Payroll update for Dynamics GP round 9

Round 9 payroll update was released for Dynamics GP today. This affects only California so if it’s above 60 degrees and you are living close to the Sharks or Kings and west of the Coyotes chances are you will need to do this. (Sorry, Canadian’s mostly use temperature and hockey town’s for figuring out geographic locations. For example, I live 5 hours south of the Calgary Flames, 8 hours from the stinky Oilers, not far enough from the Canadiens. I digress.)

It’s just a tax table update so no code is installed (assuming you have already applied round 4 where the code was changed.) Back up the Dynamics database then on the server or any workstation, log onto Microsoft Dynamics GP with the System Administrator user, and open the Payroll Tax Update window. (Microsoft Dynamics GP menu>> Maintenance>> U.S. Payroll Updates>> Check for Tax Updates) and you’re good to go.

If you are still on Great Plains 8.0, shame on you. But you can probably just download this file and run it on your sql backend. Save you some time from updating this all manually. The file is the TX.cab file and can be ran instead of doing the automatic payroll update. Make sure you back up the Dynamics database before so executing.

Important, Please read
Another side note for payroll. I received word today that MBS is starting their GP 12 planning as they think they’ve done about all they can with GP 11. (Hope that’s a good thing.) I was asked for any wish lists items for HR and Payroll. If you have anything you would like added to Dynamics payroll and HR, NOW is the time to voice your opinion. If you don’t have a MBS super secret contact to get you in on the planning leave a comment here and I’ll be sure to voice your opinion. (I’m talking to you Chris.)

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