web
You’re offline. This is a read only version of the page.
close
Skip to main content

Notifications

Announcements

No record found.

News and Announcements icon
Community site session details

Community site session details

Session Id :
Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / W2 Federal Taxable Wages
Finance | Project Operations, Human Resources, ...
Answered

W2 Federal Taxable Wages

(0) ShareShare
ReportReport
Posted on by Sunil Chhabra 1,958

We just noticed that the W2's are picking up incorrect Federal Taxable  Wages.

We offer a tax free benefit and it is setup as a  paycode .

If I look at the Employee Summary Inquiry Window it correctly shows all the wages types

For example, the tax free benefit for the year is $20  - the Gross Wages are 50000, Taxable Fed Wages are 49980, FICA/MC wages are also the same 49980.  There are no tax deferred deductions.

But when we print the w2 - the Box 1 lists as $50000  (Box 1 is federal taxable wages it should be 49800)

SS Box 2 and MC Box 5  wages are correct as 49980.

What could be causing this?

Thanks for your assistance

Categories:
Microsoft Dynamics GP
I have the same question (0)
  • Suggested answer
    Terry R Heley Profile Picture
    Terry R Heley Microsoft Employee on at

    Hello, all pay codes are added to gross even if it is not subject to tax

    The pay code needs to be a business expense pay type that is the only one that will not be added to gross

    For W2 time, to figure box 1 we take gross – TSA + taxable benefits.

    For this year, you may need to edit the W2, then process this with a new pay code for the 2020 year so the record is updated correctly.  Thanks

    Terry Heley

    Microsoft

  • Sunil Chhabra Profile Picture
    Sunil Chhabra 1,958 on at

    Thanks Terry. Not the answer I was looking for but it is GP and I have learned to expect the unexpected.

    Not sure why it will not add the amount to SS and MC wages as well at least it will be consistent - rather then just Federal Wages on W2. Also makes no sense why allow the user to uncheck the Federal Tax and other tax  boxes for Paycode unless it is a Business Expense.

Under review

Thank you for your reply! To ensure a great experience for everyone, your content is awaiting approval by our Community Managers. Please check back later.

Helpful resources

Quick Links

Responsible AI policies

As AI tools become more common, we’re introducing a Responsible AI Use…

Neeraj Kumar – Community Spotlight

We are honored to recognize Neeraj Kumar as our Community Spotlight honoree for…

Congratulations to the November Top 10 Community Leaders!

These are the community rock stars!

Leaderboard > Finance | Project Operations, Human Resources, AX, GP, SL

#1
Martin Dráb Profile Picture

Martin Dráb 503 Most Valuable Professional

#2
André Arnaud de Calavon Profile Picture

André Arnaud de Cal... 434 Super User 2025 Season 2

#3
BillurSamdancioglu Profile Picture

BillurSamdancioglu 278 Most Valuable Professional

Last 30 days Overall leaderboard

Featured topics

End-of-life Announcement for Microsoft Dynamics GP

Product updates

Dynamics 365 release plans