Federal Tax Withholding with Multiple Other Pay Types on one Check

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Client using Dynamics GP 2013 with 2015 Year end update installed.

If we process a check with only salary, or with salary and one "other" pay type, the Federal Tax calculation is correct.

The salary is semi-monthly (multiplied by 24 for the annualization), and the "other" pay type is Annual (should be included as entered in the annualization).

However, if we enter two "other" pay transactions for the same check, the annualization apparently multiples both "other" amounts by 12, resulting in an over withholding of Federal Tax.

Looking for anyone who has experienced this issue and any possible "fixes" you may have discovered.

Tom Reed

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Community Member on at

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RE: Federal Tax Withholding with Multiple Other Pay Types on one Check

It would be difficult to use flat tax percentages as the employees receiving these "other" pay (bonuses) are at many different pay levels - that is the beauty of having GP do the annualization for each employee.

All employees are paid semi-monthly, and the Bonus Pay Code is set up as Annual - the calculation works perfectly if we have only one "other" pay code transaction per check.

There are tax-sheltered deductions but we have run test calculations with and without both deductions and benefits and GP handles that calculation fine.
Sherlene Sorenson 967 on at

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RE: Federal Tax Withholding with Multiple Other Pay Types on one Check

Hello Tom,

One work-around could be to use a flat tax percentage on the paycode(s) or adjust the W4 window for the employee. Are you encountering this issue only when the paycodes have different Frequency types? Are there tax-sheltered deductions playing into this as well?