Hi Everyone!

Year-End is right around the corner, and my goal is to help you get your W-2’s out the door on time!! I’d like to remind you about some COOL W-2 features, provide you with some basic information around how W-2's work in Microsoft Dynamics GP, as well as provide you the most Frequently Asked Questions we see in support. Enjoy!

What COOL features should you be aware of?

With the release of Microsoft Dynamics GP 2015 R2, Self-Service users can view and print their own W2s!! Click HERE to read more about this feature in US Payroll.

With the release of the 2015 Year End Update for GP 2015, you can control 'when' employee self-service users are able to access W2 information!! To enable this feature, the 'Publish to Employee Self Service' field was added to the Print W-2 Forms window (Microsoft Dynamics GP >> Tools >> Routines >> Payroll >> Print W-2s):

 

With the release of Microsoft Dynamics GP 2016 R2, you have the ability print W-2's with lines on blank paper!!!!!!!! The 1-Wide Forms with Box Form Type was added in the Print W-2 Forms window to accomplish this (Microsoft Dynamics GP >> Routines >> Payroll >> Print W-2's >> Form Type = 1 Wide- Forms with Box >> Print = W-2 Forms):

Note:  We only print the black form with lines, not the red form, but most customers electronically file so the red forms do not need to be purchased, just file electronic for FREE.

Where does the information in the W-2's come from?

When a year is closed in the Payroll module, Microsoft Dynamics GP populates the Payroll Year End Wage tables, which are used to generate the Year-End Wage file to generate your W-2’s and W-3!!

Payroll Year End Wage Tables used to Generate W-2 and W-3 (Company Database)

UPR10100

Year End Header

UPR10101

Employee W2 amounts

UPR10103

Pension information

UPR10104

Special amount information

UPR10105

State tax information

UPR10106          

Local tax information

UPR10107

Other amount information

 

 

IF you need to make changes/edits to ensure W-2s are accurate after the year-end wage file has been created, you have a couple of options:

 

Option 1 - Manually Edit W-2's (most common):

Manually edit the W-2 via the Edit W-2 Information window (Microsoft Dynamics GP >> Tools >> Routines >> Payroll >> Edit W-2). *This is what most users do*:


 

Note: Changes made here will update the Payroll Year End Wage tables only, and are not reflected in any other tables in the Payroll module.

Note: If you remove the Year End Wage File for any year, ALL edits made manually via the Edit W-2 Information window are lost. This is because removing the year-end wage file removes data from all of the Payroll Year End Wage tables for the year in question.

 

Option 2 - Remove Year-End Wage File, Make Changes, and Recreate Year-End Wage File:

*Remember, if you choose this option any manual edits you've already made on your W-2's will be lost.

*Always make a backup of the databases prior to making any changes.*

1. Ensure No users are processing in Payroll system wide.

2. Remove the Year-End Wage file for the appropriate year (Microsoft Dynamics GP >> Tools >> Utilities >> Payroll >> Remove Year End Information).

3. 2017 Tax Tables recommended.

  • Click HERE to download tax tables for Microsoft Dynamics GP 2013
  • Click HERE to download tax tables for Microsoft Dynamics GP 2015
  • Click HERE to download tax tables for Microsoft Dynamics GP 2016

4. Make needed changes in Payroll (whether that's voiding checks, processing checks, fixing W-2 labels, processing manual checks, etc.)

5. Once you have verified all data is accurate, close the Payroll year again (2017 tax tables recommended).

6. Verify changes updated the Year-End Wage file and W-2's as desired.

7. Make another backup.

8. Re-install 2018 tax tables prior to any further processing in Payroll for the 2018 payroll year (Microsoft Dynamics GP >> Maintenance >> US Payroll Updates >> Check for Tax Updates).

Note: For the 2017 W-2 reporting year: The verification code is not required.  Microsoft Dynamics GP will not produce the verification code for the 2017 year.  This is something we will review in a future update as it is still optional at this point and only in a testing stage.

Top Trending W-2 Questions This Year:

QUESTION 1: Deductions, benefits, and/or pay codes are doubled/tripled on my W-2’s! Why, and how can I fix this?

You may also encounter this error when you create the year end age file:

Payroll Year End - UPR_Year_End_WORK_Other failed. A record was already locked   or  
Payroll Year End - UPR_Year_End_WORK_Special failed. A record was already locked

ANSWER 1: This happens when the ‘same’ W-2 label has been assigned to a particular pay code, benefit, or deduction more than once (you can assign up to 4 W-2 labels to each code). Please utilize the AWESOME blog Benefit, Deduction and/or Pay Code Amounts are Doubled on My W-2s to find and remove the problem duplicates so you can recreate your Year End Wage file with appropriate amounts!
The record lock error seems to cause issues when we have many deductions and benefits assigned to employees with codes they are not using (zero amount for the year).  You will be able to tell by the error message which employee is stopping the process and review their labels, especially look at duplicate labels for benefits and deductions and if they are needed, if not, remove.
Example script check for box 14 and 12 labels
select W2BXNMBR, W2BXLABL, * from UPR00500 where EMPLOYID='XXX'
select W2BXNMBR, W2BXLABL, * from UPR00600 where EMPLOYID='XXX'

Also look at life to date amounts make sure there are no negatives.  
select LTDDEDTN, * from UPR00500 where EMPLOYID='XXX'

QUESTION 2: Box 1 on the W-2 does not match Federal Wages in the Employee Summary window. Why, and how do I fix this?

ANSWER 2: It can be normal for Box 1 to differ from the Federal Wages in the Employee Summary window. All pay codes are added to ‘Gross’ under Cards >> Payroll >> Summary, even if the federal box is not marked on the pay code. However, most users do want these two values to match.

The calculation for Box 1 of the W-2 is as follows:

Gross Wages (from Employee Summary window) + YTD Benefits subject to Fed tax + Reported Tips + Charged Tips – YTD TSA Deductions

This is explained in more detail in the W-2 Data Source Document:

The only time a pay code is not added to ‘Gross’ is when the pay code is a ‘Business Expense’ pay type marked ‘not to be included as wages’, or when the pay code is a 'Pension' pay type.

It is very common for users to think pay codes not marked as subject to federal tax will not be included in Box 1. However, that is not the case. If you do not want a pay code amount to be included in box 1 you should set it up as a business expense pay code pay type.

Most commonly, users will see amounts in this field updated with unexpected amounts when:

  • A pay code was not marked to be subject to federal wages, so you aren’t expecting the value to be included in Box 1.
  • A deduction, a benefit, or a pay code may have been changed so that it is taxed instead of not being taxed, or vice versa. This change causes a difference in federal wages in Form 941/W-2’s and the Payroll Summary report. This change is not corrected during the reconcile process.
  • A manual check was processed incorrectly (taxable wages and tax amounts not recorded).

See KB 862929 for more information around what can cause unexpected federal wages differences, along with how to fix the problem.

 

QUESTION 3: Where should I report the cost of coverage of an employer-sponsored group health plan on the W-2?

ANSWER 3: Applicable employer-sponsored group health plan values should be reported in Box 12 DD on the W-2. For more details see: https://www.irs.gov/affordable-care-act/form-w-2-reporting-of-employer-sponsored-health-coverage

For more details around how to add a W-2 box and label to your deductions/benefits: see #16 in my complete list of W-2 FAQs below!

 

Click HERE to download my complete list of W-2 FAQs!!!

We get a lot of questions, so rest assured I will keep updating the list as questions come in.

 

Assistance for W-2 and W-3 Questions associated with Payroll Year End Close

 Microsoft Dynamics GP Blog - https://community.dynamics.com/product/gp/gptechnical/b/dynamicsgp/default.aspx

Microsoft Dynamics Community - https://community.dynamics.com/

Microsoft Dynamics Support - https://mbs.microsoft.com/support/newstart.aspx

If you are creating a case with the Technical Support Team for assistance with W-2's and/or the W-3 related to Year End close for Payroll, please refer to the category selections below to ensure you are routed to the correct Support team for assistance:

     --Support Topic Selection:    Payroll

          --Sub-topic Selection:      Year End Procedures 

W-2 and W-3 Resources:

Year-End Close Resources:

Be sure to refer to the 2017 Year-End Blog Schedule to review current and upcoming blog posts and other helpful resource links related to Year-End Closing for Dynamics GP.

I hope this is helpful and that you have a successful Year-End!!  If you have any feedback or suggestions, please let us know. 

Have a wonderful Year-End!!!

Andrea Melroe | Sr. Technical Advisor | Microsoft Dynamics GP