**Important** When you create your Electronic W2 filing and you have a combination of Hire Act employees and multiple companies you will need to create the Electronic W2 File separately for each company. If you create one file including all companies the Hire Act employees will not include the RO record indicating that they are a Hire Act Employee for subsequent companies.
Round 3 Tax Update has released (data change)
Round 2 Tax Update for 2011 has been re-released (code change – Dynamics Version 10.00.1701). This download (MicrosoftDynamicsGP-KB2492915-V10-ENU.exe) fixes the issues below.
Check Register – When you have Direct Deposit employees the Direct Deposit Check Register will still show the incorrect amount for Employer FICA Owed. You will need to print the Reprint Check Register (Reports | Payroll | Reprint Journals) in order to show the correct Employer FICA Owed amount.
– 941 Preparation Report will be correct through 6e. The rest will be understated.
– 941 Schedule B Preparation Report will be understated. Report is taking Employee total times 2 instead of taking Employer amount.
– Form 941 Schedule B will be understated. Report is taking Employee total times 2 instead of taking Employer amount.
Round 4 – scheduled to be released mid-March (code change)
– 941 changes
– Federal Tax Liabilities List 941 amount will be understated.
Important Note: The FICA/Social Security withholding changed for employees from 6.2% to 4.2% in 2011. Round 1 included the change to both the Employee and Employer portion due to Microsoft Dynamics GP calculation being based from one amount. Due to this, General Ledger posting, inquiries and reports that show FICA amounts for employers will be calculated using 4.2% for payruns that are processed with Round 1. Round 2 Tax Update includes changes to the employer portion to bring back to 6.2%. We understand the challenges you face with this: however, it was important to release with accurate employee paychecks starting January 1, 2011.