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Payroll for Dynamics 365 Finance

Posted on by Microsoft Employee

Hello.  We've gotten some conflicting information regarding D365 Finance and whether Payroll is a "Core" piece of functionality that comes shipped when you license it.  Can someone tell me if payroll comes shipped or not?  Do we need to license a 3rd Party app for payroll?  Also, if we have to license a 3rd party app, are there self service pieces of it that allow employees to view payroll direct deposit statement, make changes to address info and other personal data?

Thanks!

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  • Suggested answer
    André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 288,420 Super User on at
    RE: Payroll for Dynamics 365 Finance

    Hi BoPrideGlobal,

    The reason is mentioned in the FAQ document I shared above:

    Q: Why is the support for tax updates for the U.S. Payroll feature being retired?

    A: Microsoft is retiring support of the tax updates for the U.S. Payroll feature in Dynamics 365 for Finance

    and Operations, Dynamics AX 2012 R3, Dynamics 365 for Operations, on-premises, and Dynamics 365 for

    Operations, Enterprise edition, on-premises due to low usage and because there is enhanced functionality

    provided via partner solutions on AppSource and integrations with Dynamics 365 Human Resources.

  • Suggested answer
    Junaid Idrees Profile Picture
    Junaid Idrees 12,740 on at
    RE: Payroll for Dynamics 365 Finance

    That is MS corporate level decision. As far i understand because each country has it's own payroll and income tax policies and also one of the reason, no one want to take the headache of calculating and processing payroll every month. There are definently pros and cons to each of the payroll solution available on MS app source but you can evaluate as per your business needs.

  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    RE: Payroll for Dynamics 365 Finance

    Thank you for the comments.  Does anyone have any insight as to why Microsoft would be dropping payroll from their flagship ERP offering?  Is it simply a matter that most companies outsource payroll now so they don't want to be involved in that space anymore?  Thanks!

  • Suggested answer
    Junaid Idrees Profile Picture
    Junaid Idrees 12,740 on at
    RE: Payroll for Dynamics 365 Finance

    Hi BoPrideGlobal,

    Yes payroll module license comes with D365 finance and operation app but As per my knowledge, Microsoft was dropping Payroll in D365 Finance and operation in October 2021 but they extended support for tax updates till 2024 that means payroll module will remain in Finance and operation app but no further enhancement/support will be provided from Microsoft.

    The matter of fact is, For the couple of  years in all my projects in Europe/US, I have seen companies are integrating payroll with 3rd party payroll provider or ISV's solutions associated with Payroll and integrations with D365 Finance and operation.

    I suggest you to go for payroll 3rd party app (Obviously you have to buy license), there are many on MS app source. You will find complete details on main page about what features are covered like direct deposit payroll, employee self service, transport allowances, housing loans, entertainment allowance, tax, rent arrears recovery, payslip via email. etc

  • André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 288,420 Super User on at
    RE: Payroll for Dynamics 365 Finance

    Hi BoPrideGlobal,

    The Tax updates for the US payroll will stop. This was announced about a year back. Initially, Microsoft would stop these updates in September 2021. Now it has been extended to July 2024.

    You can read it here: cloudblogs.microsoft.com/.../

    There is a document explaining more in detail: aka.ms/financepayrollfaq

    The Payroll software will remain in the system, but Microsoft will stop providing updates. Then you need to find an ISV or 3rd party solution.

  • Suggested answer
    Gunjan Bhattachayya Profile Picture
    Gunjan Bhattachayya 35,417 on at
    RE: Payroll for Dynamics 365 Finance

    Hi BoPrideGlobal,

    Payroll is a core part of the product that comes with the license. I am not sure about your question regarding the 3rd party app. Are you planning on integrating a 3rd party app with Dynamics 365 F&O?

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