Thursday, January 10, 2013

2013 Payroll Tax Update–Round 2

It’s that time of year again! Time to change the payroll tax tables, and then change them again.

Round 1 of the 2013 payroll tax tables adjusted the employee FICA percentage back to 6.2% but did not include changes to the withholding tables themselves. Terry Heley at Microsoft sent out an email yesterday evening letting us all know that they are still on track to release Round 2 of 2013 tax update today or tomorrow.

Another issue coming up is that the employer and employee FICA amounts are not coming out the same even though they are the same percentage. For example, I put in a gross pay of $1,000 and the system calculated the employer FICA at $62.00 and the employee FICA at $62.01. This is frustrating, but you are not doing anything wrong.

Terry tells us there is ‘rounding’ code written in the employee side, but not the employer. This issue will be addressed in a Hotfix due out at the end of the week ending 01/21/2013.

Round 2 of the 2013 tax tables will also be issued for version 10 customers, but that will be the last one. The January Hotfix will not be issued to version 10 customers.

Hope you are all having a fun year-end close!

Until next post


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