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We have a client that has processed their first payroll of 2013, however they did not install the year 2012 last tax update or year-end update. They also did not create their wage file. They want to apply these today and process theri 2nd payroll for 2013 tomorrow. What is the year end procedure when this happens?
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C1881.payroll-tax-9.png"MsoNormal">Here’s what I would do.
1. Download and install the January hotfix of Dynamics GP, this includes the year end tax update (as well as a hot fix). The current build is 11.00.2164. It was released 01/24/2013. Be sure you have a backup, this will require a table update. Backup your forms and reports dictionaries and create package files for all of your modifications.
2. Open the Payroll Tax Tables window and change your FICAS tax code to a wage limit of $110,100 and a rate of 4.2%
a. To open the Payroll Tax Tables window follow the instructions below.
b. Navigate to: Administration | Setup | System | Payroll Tax.
c. Select the FICAS tax code, select the Apply Tax Table item and click the Filing Status button.
d. Select the NA filing status and click the Tables button
e. Edit the table rates to set the But Not Over column at $110,100 and the Tax Rate to 4.2% and then click the OK button.
3. Click Save on the Payroll Tax Filing Status window.
4. Click Save on the Payroll Tax Setup window.
5. Now, your going to remove the extra Medicare Tax for the high income earners.
a. In the Payroll Tax Setup window select the Tax Code FICAM, Apply Tax Table, and then click the Filing Status button.
b. Select the NA filing status and click the Tables button
c. To remove the second row in the table, place your cursor in the second row, choose Edit from the menu bar and then Delete Row.
d. Now you need to adjust the first row's maximum wage by entering $999,999,999.99 in the But Not Over column. Click OK to save and close the window.
6. Click Save on the Payroll Tax Filing Status window.
7. Click Save on the Payroll Tax Setup window.
8. Change the user date to 12/31/2012 (anything in 2012 will do)
9. Create the year end wage file (close payroll).
10. Make sure you’re happy with the W-2 amounts.
11. Load the 2013 tax tables using the Payroll Tax Updates wizard
12. Check to make sure the FICAS amounts reset to a wage limit of $113,700 and a rate of 6.2%
13. Check to make sure the FICAM table includes the 2.35% extra for wages over $200,000.00.
14. Don't forget to set the User Date back to the right date to process 2013 payroll.
Kind regards,
Leslie
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