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Closed Last Years W-2s with wrong tax rates

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Posted on by RJarrell

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We have a client who did not correctly update their tax tables for 2024 and closed the year. They have already processed transactions for 2025. We need to go back and correct the FICA max, the W-2s, and the 941 reports. How would others handle this?

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Microsoft Dynamics GP

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Lisa at AonC.com 747 on at

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Closed Last Years W-2s with wrong tax rates

@RJarrell - You are correct that editing the W2s does not edit any other reporting (like the 941).

Here are a few resources on how the 941 is calculated:
Incorrect calculations on a Payroll Report - Dynamics GP | Microsoft Learn

My 941 does not match my payroll summary, tell me WHY?

There wouldn't be a way for the changes to the W2 to roll back to the 941 (since the W2 is annual and 941s are quarterly). Since the 941 is a summary report, I would expect you would use the information above to get the correct numbers for the 941 and then manually complete the 941 report with the correct (reconciled) data.

[If you are comfortable with modifying tax tables - and you can schedule this for a time when no 2025 payroll work is being done - you could try changing the tax tables at Microsoft Dynamics GP menu >> Tools >> Setup >> System >> Payroll Tax.]
RJarrell 311 on at

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Closed Last Years W-2s with wrong tax rates

@Lisa at AonC.com

Thank you for the input! I actually got to test this today. Editing the W-2 works for the amended W-2 but it didn't seem to have an affect on the 941 reports. I did see that I could edit the Employee Summary and this affected the 941 report. Do you recommend updating the Employee Summary? Will those changes stay or will they be reset if we do a reconcile or checklinks? I don't know if we could enter a transaction into 2024 that would have a permanent affect on the 941 or not.
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Lisa at AonC.com 747 on at

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Closed Last Years W-2s with wrong tax rates

Have you tried editing the W2s at Microsoft Dynamics GP > Tools > Routines > Payroll > Edit W-2s?

[If I was needing to make changes like this, I would restore to a test company to try out making the change there and confirming the W2 then prints properly.]

There is some useful information in the US year-end update - Dynamics GP | Microsoft Learn document, including FAQs on using the Edit W-2s window.