2018 Non resident alien tax calculations

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Posted on by Barbara Williams

I have applied the 2018 round 3 tax update but the taxes for NRA employees are still not calculating correctly. According to my calculations which I based on IRS pub 15, a monthly employee making 400/month should have $40 withheld. GP is calculating $0. I have checked the tax tables and they are the same as listed in the documentation. The employee has a federal filing status of Nonresident alien and 1 exemption. Can someone tell me how GP is calculating the NRA tax?

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Terry R Heley Microsoft Employee on at

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NRA is calculated just as any other tax Barbara, we annualize everything so check your frequencies pay periods

Here is my blog on this

https://blogs.msdn.microsoft.com/dynamicsgp/2012/01/17/how-to-verify-microsoft-dynamics-gp-is-calculating-payroll-taxes-correctly/

Here are some screen shots of an example

Let me know if you still have issues.

Thanks

Terry Heley

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Barbara Williams 30 on at

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Thank you so much for your response! I have checked my setups, manually calculated the tax, and used the website you suggested to check. Both the manual calculation and website show the tax should be 40.00 but GP shows 0.00. Is it possible that the NRA tax table is still not correct? NRA taxes were calculating correctly for 2017 and the setups for paycodes and taxees have not changed.

I was unable to see your screen shots.

Thank you for your help!

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Terry R Heley Microsoft Employee on at

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email me at theley@microsoft.com, some times that work for you , I can stream in and review your setup, thanks!

Terry

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Brenda Willey 2,520 on at

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I have a client with the same issue. They are telling me that there is an amount that needs to be added to the gross wages?

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Terry R Heley Microsoft Employee on at

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This is all built into the NRA filing status tax tables Brenda.

Make sure they are on round 3 or later where we made the correction to the NRA tax tables.

Thanks

Terry

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