Updated Payroll Tax Liability Formula for Dynamics GP

By Tracey BrinkmanMicrosoft Dynamics GP, Payroll, , With 0 comments

By Ryan McBee

 

Prior to the latest Payroll Update for Great Plains, you could do an audit check of the Payroll Tax Liability GP calculation by simply taking Federal Tax Withholding + Fica Medicare Withholding times 2 + Fica SSN times 2.  As you probably know by now, the Employers portion of FICA is 6.2% and the Employers portion has been reduced to 4.2%.

However, I have had a number of clients contact me and say this formula is no longer applicable and have asked for a revised formula.  The new formula is described below and ties out to a sample Payroll Run using Fabrikam.

Reprint Check Register

As you can see from above, the prior formula is not applicable and the new audit check is as follows;

Federal Tax WH    $              6,655.17  
Employee Medicare    $                 408.47  
Employees SS    $              1,746.54  
Employer Medicare    $                 408.47  
Employer SS    $              1,746.55 (FICA Owned – FICA   Medicare WH)
     
Total Tax Liability    $            10,965.20  

I have talked with Microsoft and at this time, they have no intent on modifying the report to split out the employer (6.2%) and employee (4.2%) FICA portions.