Dynamics GP New Year Resolution or W2 and 1099 forms as well as Social Security Contribution mismatch

FOR IMMEDIATE RELEASE
Chicago, Illinois, United States of America (Free-Press-Release.com) February 1, 2012 --

Controllers are often in heavy workload mode so when it is time to print and mail 1099 and W2 forms you might find yourself in the situation when something is terribly wrong in the printed form and it is due today to be stamped and mailed by USPS. Also with recent congress activity GP got issue with Social Security mismatch for employee and employer portions. Microsoft recommended work around where correction is done for employer portion directly in the General Ledger. Later tax update was issued in January of 2011 however it was only applicable to versions 2010, 10.0 and 9.0. Earlier versions were no longer supported and fix is not available for them: 8.0, 7.5, 7.0, 6.0, 5.5, 5.0 and earlier. Let’s take a look at the work around:

1. W2. Issues might happen with such codes as Tips and Deductions where summaries for employee show amounts that are different from what you see printed on W2 form. It is possible to invite consultant to take a look at Payroll tables, especially UPR30300 and UPR30100 but if you are under time pressure consider editing W2 and save it with new numbers. Here is the menu path: Tools -> Routines -> Payroll -> Edit W2 Rs. If you are reading this paper directly on the Alba Spectrum website then you should see how this form looks like

2. 1099. Issues with this form are typically associated with vendor setup where you forgot to make it 1099 vendor. In vendor form in Options you should change in Tax type from ‘Non 1099 vendor’ to usually ‘Miscellaneous.’ As soon as you make it Miscellaneous each vendor invoice is summarizing 1099 purchases automatically. But the transactions prior the change would still be counted as 1099 free. Well good to know and thank you anyway but how I print the form? There is work around. Please follow the following menu path: Cards -> Purchasing -> Summary and on the Vendor Credit Summary screen pick the vendor ID and then click on Period button on the bottom right section of the form. On the form ‘Vendor Period Summary’ now pick the previous year and period 12 (or whatever is your last fiscal period for the year – you might be using weeks as periods). Make Amount Billed, Amount Paid and 1099 Amount equal annual paid vendor activity. This simple work around should allow you to print 1099 form for the vendor. If you have huge number of vendors wrong then the same results could be achieved directly via SQL by updating table PM00202 PM Vendor Master Period Summary

3. Social Security contribution percentages issue. If you are on version 2010 and 10.0 currently supported by Microsoft Business Solutions (as we are writing these lines in February of 2012) then all you need to do is keep applying US Payroll tax updates. The issue is really difficult for somebody who is on older versions. First of all let’s talk about release 9.0. If you on 9.0 then you are lucky, talk to your consulting partner and have them apply tax update released in January of 2011 when your version was still under support. The problem is beyond tax tables themselves it is in the business logic. Traditionally in the United States we have the same contribution percentage from employee and employer. Dexterity business logic incorporated in Dynamics.dic metadictionary was looking into the same record to read percentage for both. When employee contribution was decreased from 6.2% to 4.2% the best recommendation would be to decrease percentage in FICAS record to 4.2% and this would keep W2 calculations correct. However in General Ledger you now have to increase employer portion from 4.2 to 6.2%

4. For additional information, please feel free to call us 1-866-528-0577 or 1-630-961-5918 (this number works for international customers) or email us help@albaspectrum.com We serve you USA/Canada nationwide via remote support (web sessions and phone/Skype conferences). Local service is available in Western Michigan, Chicagoland, Southern California (LA, Orange County and San Diego) and Houston area of the state of Texas

Andrew Karasev, http://www.albaspectrum.com Great Plains Dynamics GP and eEnterprise Certified Master, Microsoft MVP and consultant with 15 years and plus experience and expertise. Alba Spectrum, 1-866-528-0577, help@albaspectrum.com. If you are thinking implement Dynamics GP in challenging environment, we recommend you to give us a call