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Payroll - FICA Maximum

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Posted on by Terri Kirk

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Each of the last two years, we have had problems with our employees that reached the FICA maximum. In January, 2019, anyone who had maxed out the previous year did not show any FICA wages for the first check in January. This year, we loaded our tax update which increased the FICA maximum by $4,800 before the first check run in January, 2020 and everyone who had maxed out in 2019 showed FICA wages of $4,800 (the increase).

It's almost like it is looking at the period end date instead of the check date.

Anyone else experiencing this?

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Microsoft Dynamics GP

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Thomas Franz 1,105 on at

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RE: Payroll - FICA Maximum

The likely cause is that the year of your User Date was not in 2020. As a best practice approach, you always set your User Date to the Check Date when doing the Build & Calculate. If you consider the fact that the Check Date is not entered until you get to the Print Checks process, it may help to understand why GP uses the User Date to determine which "year" you are in when taxes are calculated.

Hope this helps!

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