FICA Issue with Payroll
For those of you that recently applied the payroll tax update for 2011 you have noticed the new FICA 4.2% employee share change. However due to a an issue with Dynamics GP the employer portion of FICA is also being calculated at 4.2% when posting the employer portion to the general ledger and printing on payroll reports. This problem is expected to be corrected in the round two tax update to be released around 1/24/2011. Microsoft said that this update will correct the payroll reports but it will not correct the general ledger postings.