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Finance | Project Operations, Human Resources, ...
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Dynamics AX 2012 R3 2020 Payroll Worker tax code setup

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Posted on by 105

We recently upgraded to AX 2012 R3 CU13 as well as 2020R1 payroll tax update. There are a few new worker tax code parameter options under the worker such as 2020W4 Use 2020 W4 Parameters but we're not sure how to use them. Does anyone know if Microsoft is going to release a guide showing how to use these in accordance with the new 2020 W4 form?

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  • Suggested answer
    RYANSE Profile Picture
    on at

    Hello Evan,

    Thank you for using Microsoft Dynamics Communities!  Please see our Payroll Blog for this.  

    (12/23/19) – Tax release label is 2020-R1, not 2019-R12. Also added information on 2020 W-4 changes. Releases for AX 2012 R3 and Dynamics 365 Finance are progressing, but likely won't be available for download before 12/26. 

    2020 W-4 changes

    The new changes for the 2020 W-4 will be surfaced as parameters on each employee's federal income tax worker tax code. Starting with this update, there will be a new parameter for 2020 W4 per employee, which will be defaulted to False for all users. With this option, you will be able to continue using the old or new W-4 calculation for withholding calculations per IRS requirements of only requiring new employees being required to fill out the 2020 format of the W-4.

    https://www.irs.gov/newsroom/faqs-on-the-2020-form-w-4

    Note: Final calculation changes are still in works from the IRS for publication 15-T so there will be forthcoming updates in January 2020 with final tax tables for the calculations. 

    https://community.dynamics.com/ax/b/axhcmnewslearningshighlights/posts/2019-r12a-payroll-update-and-w-4-changes

    I do not believe there are any other materials at this time that speak about the best way to use these parameters.  However, the best source to look at would be the blog I mentioned above.

  • Evan Adamson Profile Picture
    105 on at

    Hello RYANSE, thanks for your response. I ran accross that post a few months ago and have tried posting pay statements for multiple employees using a various combination of values for the tax code "USA-FED-FIT". I tried "True" and "False" for value "2020WF", "TWO_JOBS, "DEPENDENTS_AMT" and "OTHER_INCOME". However none of combinations produced any more or less tax being withheld from the pay statement.

  • Suggested answer
    RYANSE Profile Picture
    on at

    Hello Evan,

    Thank you for the update!  It sounds like this is something that should be tested and have a quality report logged for.  I conducted some research and was not able to find any active quality reports for this.  I would recommend logging a support incident and we can investigate further!

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