Saturday, January 1, 2011

2011 Payroll Tax Updates for Dynamics GP

Round 1 tax update for 2011 was released on December 17, 2010.
Effected states: Alabama, California, Kentucky, Michigan, Minnesota, New York City, Puerto Rico, Rhode Island.

Federal Changes:
  • Advanced Earned Income Tax Credit - has been repealed and recipients will not receive Advanced EITC on paychecks after December 31, 2010
  • FICA/Social Security withholding table - changed to 4.2% for employee FICA withholding. Be sure to create the year end wage file before installing this update. **Important Note: The FICA/Social Security withholding table will be updated for employers in a release scheduled for January, 2011. General Ledger posting, inquires and reports that show FICA amounts for employers will be calculated using 4.2% until that time. We understand the challenges you face with this; however, it was important to release with accurate employee paychecks starting January 1, 2011
  • Personal exemption amount has changed
  • Federal tax wage ranges, tax amounts, tax rates have been changed

Round 2 tax update for 2011 is scheduled to be released on January 24th, 2011.

Effected states: Maryland, Hawaii, New Mexico, Vermont, North Dakota, Colorado, Arizona, Oklahama, Oregon.

For questions or if you need help installing the tax updates, please email or call 949-457-0500.