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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / COVID-19 Pay and adjus...
Finance | Project Operations, Human Resources, ...
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COVID-19 Pay and adjusting out employer social security tax

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Posted on by triffe 5

Since COVID-19 sick pay and family leave pay aren't subject to employer social security taxes but GP doesn't allow you to turn off the calculation of the employer side of social security when processing payroll, how are other companies handling this since the wages are subject to social security for employees but not employers?

I know I can go in and make an adjustment through the manual check entry screen after the fact to adjust the FICA Social Security Tax in the EFIC Amount to put negative in so it takes out the amount that is owed, but unless something has changed, there isn't a field in GP that tracks employer social security taxable wages separate from employee social security taxable wages.  So while I think I can get GP to show the correct tax that is owed, the 941 report won't be correct when it comes to showing taxable wages.  

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Microsoft Dynamics GP
  • triffe Profile Picture
    triffe 5 on at
    RE: COVID-19 Pay and adjusting out employer social security tax

    I had already reviewed Terry's blog post before making my original post.  Unfortunately that doesn't address the social security issue.  It just says there's not an option to track it separately and that employer social security shouldn't be withheld.  

    All the manual check does is reduce the employer tax, but it doesn't reflect that the employer's taxable wages for social security should also be reduced since there isn't a separate bucket to hold this info in the SQL tables.

    I know this is a short term issue that will be over by end of 2020, but it is going to require a lot of out of the software tracking to get correct numbers since GP isn't equipped to handle this.  Sounds like a very strong product enhancement request for the next release - being able to track FICA wages for ER and EE and turn on or off FICA for ER or EE separately.  What's to say this won't happen again down the road?

  • Suggested answer
    Margi Jandro Profile Picture
    Margi Jandro on at
    RE: COVID-19 Pay and adjusting out employer social security tax

    Hi,

    At this time Microsoft Dynamics GP does not have the ability to reduce or exclude EFICA (Employer FICA) tax only a payroll run.

    The suggested method we are recommending is outlined in this blog article.  The suggestion is general in nature as there are many ways payrolls can set up. community.dynamics.com/.../tips-to-setup-coronavirus-paid-leave-in-microsoft-dynamics-gp

    In this blog article, are detailed steps and information on how manual checks work.

    community.dynamics.com/.../how-to-process-a-manual-check-in-payroll.aspx

    I hope the blog helps you in getting set in a direction on how to track the Family First Coronavirus Response Act (FFCRA).

    Margi Jandro

    Microsoft Support

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