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Prior to the latest Payroll Update for Great Plains, you could do an audit check of the Payroll Tax Liability GP calculation by simply taking Federal Tax Witholding + Fica Medicare Withholding times 2 + Fica SSN times 2.  As you probably know by now, the Employers portion of FICA is 6.2% and the Employers portion has been reduced to 4.2%.

However, I have had a number of clients contact me and say this formula is no longer applicable and have asked for a revised formula.  The new formula is described below and ties out to a sample Payroll Run using Fabrikam.


As you can see from above, the prior formula is not applicable and the new audit check is as follows;

Federal Tax WH  $                  6,655.17  
Employee Medicare  $                     408.47  
Employees SS  $                  1,746.54  
Employer Medicare  $                     408.47  
Employer SS  $                  1,746.55 (FICA Owned – FICA Medicare WH)
Total Tax Liability  $               10,965.20  

I have talked with Microsoft and at this time, they have no intent on modifying the report to split out the employer (6.2%) and employee (4.2%) FICA portions.


Posted on Friday, February 18, 2011 1:48 PM Dynamics GP | Back to top

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