Microsoft has released the 2012 U.S. Payroll Tax Update for Microsoft Dynamics GP 2010 and 10.0.* If you’ve been following the news, the extension on the payroll tax cut is still up in the air. The IRS has advised Microsoft to revert back to what is on the Notice 1036, which is 6.2% withholding and a $110,100 limit on Social Security. The IRS is not optimistic this will be decided before the end of the year, and it is better to over-withhold than under-withhold. If it changes back to 4.2%, Microsoft will re-release the tax update, and Gilchrist Scott will re-post instructions on how to correct any over-withholdings.
Since the 2012 tax tables include the change from 4.2% to 6.2%, it is important to install this update AFTER creating the year-end wage file for the 2011 year.
The tax update also contains changes for the following states:
California
District of Columbia
Hawaii
Kentucky
Maine
Maryland
Massachusetts
Minnesota
New Mexico
North Dakota
Oregon
Rhode Island
Vermont
Contact us with any questions regarding your year-end process. (207) 761-2133 or support@gilchristscott.com.
*Support for version 10 ends October, 2012.



