Finance | Project Operations, Human Resources, ...

Payroll for Dynamics 365 Finance

(2) Share

Report

Posted on by Community Member

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!

I have the same question (0)

All responses (9)

Answers (0)

Sort by

Suggested answer

Gunjan Bhattachayya 35,429 on at

Like (0)

Report
Copy link

Link copied!

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?

Was this reply helpful? Yes No
André Arnaud de Cal... 305,012 Super User 2026 Season 1 on at

Like (0)

Report
Copy link

Link copied!

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.

Was this reply helpful? Yes No
Suggested answer

Junaid Idrees 2 on at

Like (0)

Report
Copy link

Link copied!

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

Was this reply helpful? Yes No
Community Member on at

Like (1)

Report
Copy link

Link copied!

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!

Was this reply helpful? Yes No
Suggested answer

Junaid Idrees 2 on at

Like (0)

Report
Copy link

Link copied!

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.

Was this reply helpful? Yes No
Suggested answer

André Arnaud de Cal... 305,012 Super User 2026 Season 1 on at

Like (0)

Report
Copy link

Link copied!

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.

Was this reply helpful? Yes No
Suggested answer

CU27011421-0 on at

Like (0)

Report
Copy link

Link copied!

Payroll is not a complete out-of-the-box solution included with Dynamics 365 Finance in multiple areas of the globe. While D365 supports HR as well as Financials, a lot of end-to-end payroll is generally handled through an independent software vendor (ISV) third-party solution.

For most organizations, the use of payroll solutions from ISVs with the Dynamics ecosystem (Microsoft AppSource/Marketplace) works best for ensuring they are compliant, reporting accurate data, and posting financials directly into D365.

In most implementations, you will likely need a third-party solution to achieve your total payroll requirements. Many of these solutions include employee self-service features such as viewing payslips, updating personal information, and managing direct deposits.

You can view an example of one provider below:

https://marketplace.microsoft.com/en-cy/product/dynamic-netsoft.fb3b3132-e0ed-424d-b3e2-c0a63a8be363?tab=Overview

The selection of a provider will depend on how closely you want to integrate your payroll solution into your ERPs, what region(s) you're located in, and any compliance requirements that apply.

Was this reply helpful? Yes No
CU22041105-0 43 on at

Like (0)

Report
Copy link

Link copied!

Dynamics 365 Finance does support HR and financial management, but payroll functionality depends heavily on the country/region and compliance requirements. In many cases, organizations still use third-party payroll ISV solutions that integrate with D365 Finance rather than relying on a fully native payroll module.

Most payroll partners in the Dynamics ecosystem provide features like employee self-service, payslip access, direct deposit management, tax handling, and payroll posting directly into D365 Finance.

Microsoft AppSource has multiple payroll integrations available depending on region and business size. One example is:

https://appsource.microsoft.com/en-us/product/dynamics-365/dynamic-netsoft.fb3b3132-e0ed-424d-b3e2-c0a63a8be363

The best approach usually depends on local compliance, integration needs, and whether you want payroll tightly connected with finance and HR processes.

Was this reply helpful? Yes No
Suggested answer

Giorgio Bonacorsi 3,175 on at

Like (1)

Report
Copy link

Link copied!
Hello,

Theoretically, Payroll is part of the core modules in D365FO.
In practice, it is rarely used. Payroll rules and calculations are highly sensitive and vary significantly by country (and sometimes by state). It's legally dangerous to do mistake on the payroll salaries tax calculation.

Most implementers therefore keep payroll outside D365FO and only import the GL entries.
If you want to use D365FO Payroll, I recommend:

Learn the core Payroll module first.

Look for a suitable ISV solution on AppSource that is localized for your country https://marketplace.microsoft.com/en-us/search/products?product=dynamics-365-for-finance-and-operations%3Bdynamics-365-human-resources&page=1

Choose wisely and if you choose D365FO, perform your UAT and CRP tests thoroughly to mitigate the risk.

Good luck!
Giorgio

Was this reply helpful? Yes No