For those of you looking for official word on the FICA issue due to new tax law changes, it can be found at this CustomerSource location. This is for GP 2010 but there is a similar announcement for GP 10.
In a nutshell:
Round 1 Tax Update for 2011 has been released.
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 will include 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.
Round 2 Tax Update for 2011 is scheduled to be released the week of 1/24/2011. This update will include changes to the following:
- New Mexico
- North Dakota
- FICA code changes