Updated Payroll Tax Liability Formula for Dynamics GP
February 14 |
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However, I have had a number of clients contact me and say this formula is no longer applicable and have asked for a revised formula.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.
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.
