Round 7 Payroll Tax Update Released

The Round 7 Tax Update is available. This update includes changes to Puerto Rico and Connecticut.

Dynamics GP 10.0 Update
Dynamics GP2010 Update

**This update requires that you have previously installed the Round 6 Tax Update; MicrosoftDynamicsGP-KB2552042-v10-ENU.exe Version 10.00.1757 OR MicrosoftDynamicsGP11-KB2552044-ENU.msp Version 11.00.1799.

The Last Tax Table Update Date and the Last Tax Code Update Date can be found at Microsoft Dynamics GP > Tools > Setup > System > Payroll Tax.

If you have any questions or need help installing this tax update, please contact support@collinscomputing.com.

Connecticut State Tax - UPDATE

Round 7 Tax Update will be released the week of August 22nd. This update will include changes to the state of Connecticut.

- Notice to Connecticut users - The state of Connecticut is going to be rereleasing additional changes around additional withholding amounts and new hires that start after 8/1/2011 and how the taxes are calculated with the new changes that were effective 8/1/2011. Once these changes are released Microsoft will be including them in our Round 7 Tax Update.

More info to come.....

Connecticut State Tax - Revised changes due to release next week

The state of Connecticut has had some issues with the new tax rules that were effective 8/1/2011. Microsoft has been diligently working with the state to get these conundrums resolved. The state of Connecticut will be issuing a press release statement next week that will clarify some of the calculation steps for all companies to abide by, currently, they have contradictory information on their website between different documents.

Once the state of CT releases this information, Microsoft will review it and make changes as necessary. Since this is a time sensitive situation, they are going to try and turn this around as quick as possible and probably release a hot fix (chunk file format) that will be faster and easier for you to install if you run payroll for employees in the state of CT. This would require you to have the Round 6 CT tax code and table already loaded.

Here are the current areas of concern Microsoft has with the state, but not limited to:

• Additional withholding , there was nothing specified in the original calculation method around addition amounts and how they should be factored in.
  
• If employees are hired after 8/1 , they should have a reduce amount taken as they started later in the year and the YTD step in the calculation should be skipped, again, was not in the released calculation rules (Microsoft will probably have a new filing status for this type of employee identifying the later start date and it will have the correct calculations steps for them)

Potential changes in the future:
There is talk of a federal tax change to release
Puerto Rico has released a new tax change/table - Microsoft is reviewing this.

The Connecticut re-release will be Microsoft's first and top priority and then will release another tax update for the future updates noted above, once all is finalized.

We will send out an update as soon as we know more.

If you have any questions, please contact support@collinscomputing.com or at 888-391-6690.