22 September 2008

Weekly Dynamic: Update Your Payroll Tax Files

If you are using Dynamics GP's payroll module it's important that you update your payroll tax tables on a regular basis. This is normally a download from Microsoft and it's pretty easy to do. It's part of the year end checklist but people don't always pay attention and updates happen more frequently than annually.

The basic steps are:

  1. Log in as a system administrator (typically SA or Dynsa) and open Help>U.S. Payroll Updates>Check for Tax Updates.
  2. Select Automatic (need internet connection) or Manual (download the TX.cab file and save to GP install folder. For manual, specify the file location.
  3. Click process to start update
  4. Verify. Open Tools>Setup>System>Payroll Tax and validate the date. I believe the current update as of this post is 8/15/08.
There are lots of specific instructions at this link.

If you're not comfortable doing this or you are unsure that this is getting done, check with your partner or MS support. Be aware that the Microsoft folks like to sneak in a payroll tax update before year end as part of a service pack. I've never liked that idea but it happens pretty consistently so you might as well prepare for it. Also, if your version is too old to be supported by an enhancement plan, you won't be seeing payroll tax updates.

Just in case you are sitting there saying "This could never happen to me", this Weekly Dynamic came from an I.B.I.S. Help Desk case that illustrates that this CAN happen to you if you don't pay attention. Jim Corley of the I.B.I.S. Help Desk dropped this note to our consultants:

I’m working with a customer right now who’s used GP payroll for years and has more than one CPA in the accounting department and they have not updated their tax-rate table since 2006. As you know, state and federal tax authorities have no sense of humor when it comes to under payment.

Get out and update those tax tables today!