Wednesday, December 28, 2011

Beware the 2012 Tax Tables!

The first batch of 2012 tax tables issued by GP are WRONG.


The FICA withholding is set to 6.2% instead of 4.2%. I know how much fun we had last year with this problem, let's not do it again. GP will be issuing new tables this week - those should be correct.

If you have imported the 2012 tables, you can simply change the FICAS tax table to reflect the correct 4.2% rate.

Here's how to change the percentage:

Microsoft Dynamics GP > Setup > System > Payroll Tax

1. Tax Code = FICAS

2. Select the 'Filing Status' button

Payroll Tax Setup window

On next window:

3. Filing Status = NA

4. Select the 'Tables' button
Payroll Tax Setup window

Type in the new Tax Rate where indicated. You can also update the limit. In the window below, the FICA limit is 106,800. The limit goes up for the 2012 tax year to $110,100.

Payroll Tax Tables window

We are all rushing to the finish line this time of year - don't forget to have fun!  I hope this will help someone.

Until next post!


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