From the newsgroups: Tracking COBRA in Microsoft Dynamics GP Payroll (US only)

This week’s answer comes courtesy of Microsoft’s Aaron Richards over at the Partner Online Technical Community, but first the question — no names given to protect the innocent 🙂

We are using Dynamics GP2010. How do we track COBRA in Payroll. We are not using HR.

Specifically, we are trying to track what the government reimbureses us. For example, we’re trying to track 70% that we pay to the insurer on the 941 that we send to the government which eventually reimburses back from the government that we had paid.

Please advise or point me to a reference for utilizing this.

As stated by the partner, the customer is not using the HR module which has full COBRA tracking capabilities. Here is what Aaron had to say:

Thank you for using Microsoft Online Communities. My name is Aaron and I will be assisting you with your questions today. This information was released when we started tracking COBRA in the hotfix pdf.

It stated the following:

Consolidated Omnibus Reconciliation Act (COBRA) changes

The recently-passed economic stimulus legislation (American Recovery and Reinvestment Act of 2009) establishes an employer-provided 65% COBRA premium subsidy for certain workers who lost their jobs between Sept. 1, 2008, and Dec. 31, 2009. The employer is reimbursed for the subsidy by claiming a credit on quarterly federal tax returns (Form 941). For details of the Act’s provisions relating to COBRA, see http://www.irs.gov/newsroom/article/0,,id=204505,00.html at the IRS site, and http://www.dol.gov/ebsa/COBRA.html at the Department of Labor site. The March 2009 Round 4 U.S. Payroll Tax Update contains the following Payroll and Human Resources changes to support the COBRA premium subsidy.

The Payroll Setup window contains new fields that allow you to select and display a COBRA subsidy benefit code.

The Cobra Premiums and Payments window in Human Resources contains a new field that allows you to indicate whether a payment is an employer-paid COBRA Premium Subsidy. If it is, you can enter or select a Batch ID for the payment (the batch lookup will display only manual check batches). These fields will be accessible only if you have assigned a COBRA subsidy benefit code in the Payroll Setup window.

The Quarterly 941 Preparation report and the Form 941 report have been changed to display COBRA subsidy information. Line 12a shows the total of the posted COBRA subsidy benefits for all employees during the associated quarter. Line 12b shows the number of employees receiving COBRA subsidy benefits during the associated quarter. The changes are included on both single-company and cross-company quarterly 941 reports.

Additionally, lines Line 7d through 7g are removed from Form 941, and Line 7h (Total Adjustments) becomes Line 7d. The form layout is changed to reflect the new field positions.

The Act specifies that employers must notify certain current and former participants and beneficiaries about the premium reduction. The U.S. Department of Labor has posted links to four model notices at http://www.dol.gov/ebsa/COBRAmodelnotice.html. You will need to decide which notification to use. A link to the Department of Labor Web site has been added to the Human Resources COBRA Recipients Lists window. There are no changes to the COBRA notifications generated by Human Resources.

March 2009 Round 4 U.S. Payroll Tax Update – 4

Setting up the COBRA subsidy
1. In the Benefit Setup window, create a new benefit code to track the employer COBRA subsidy.

2. In the Payroll Posting Accounts Setup window, assign General Ledger account codes for the employer subsidy payment (Benefit Expense and Benefit Payable).

If you do not want to post the amount to General Ledger, you can use the same account for both codes.

3. In the Payroll Setup window, assign the new benefit code as the COBRA subsidy benefit.

4. For any employees electing to receive COBRA benefits and eligible for the 65% subsidy, assign the new benefit code to the employee, using the Employee Benefit Maintenance window. Mark the Transaction Required option.

5. Inactivate the employee pay records, as well as all other deduction, benefit, and tax records for the employee.

6. Keep the employee record as well as the new COBRA benefit active.

Processing a COBRA subsidy if you are using only Payroll

1. In the Payroll Manual Check-Adjustment Entry window, enter an adjustment transaction for the employee.

2. In the Payroll Manual Check Transaction Entry window, specify the COBRA benefit code and the amount of the subsidy.

3. Post the adjustment transaction, which updates the benefit code.
4. At quarter end, print the Quarter End 941 report, which includes the COBRA subsidy amount.

I hope this in-depth review helps with your COBRA strikes.

Until next post!

MG.-
Mariano Gomez, MVP
Maximum Global Business, LLC
http://www.maximumglobalbusiness.com/

Microsoft Dynamics GP 2010 – Service Call Management Enhancements, Part 2

You had a chance to review the first set of enhancements in my Part 1 article. Now we will review a second set of features to conclude the Microsoft Dynamics GP 2010 Service Call Management enhancements series.

Generate payables vouchers for subcontractor charges

You can automatically generate vouchers in Payables Management for subcontractor labor, expenses, or additional charges. The vouchers are created during service call billing. To enable this feature, you must specify a Vendor ID for each subcontractor technician. You also can designate subcontractor service types.

Post labor information to U.S. Payroll

You can now post labor information from Field Service to U.S. Payroll. New setup options, Payroll Integration and Post to Payroll, are added to the Service Setup window. When these options are activated, Field Service integrates to U.S. Payroll for labor or indirect labor. Payroll transactions can be based on the information that is entered in the Service Call Entry – Labor, Labor Information, and Indirect Labor Entry/Update windows, and in a new window, Field Service Labor – Payroll. This feature also integrates the cost from the employee’s pay code to the labor record in Field Service.

Service Setup window

Service Setup – Service window

Service Call Entry – Labor & Labor Information Windows

Use kit items in the Field Service Series

You can add kit items to parts lines, and you can make changes to the component lines, including quantity ordered. You can create a purchase order from a kit item or from one or more component items. If you do so, the kit item cannot be transferred, but the individual inventory components can. You can specify a kit as a part for an engineered change order. The resulting service calls that are generated include the kit item and the components that are specified in a new window, Service Parts – Kit Components.

Service Call Entry – Parts window

One thing I found interesting when entering a kit on the Service Call Entry – Parts window is, when a kit is selected you have one and only one chance at entering the quantity being ordered before the code breaks down the kit into its components on the Parts window. I also think that a validation is missing where users are warned when a component belonging to a kit is removed from the Service Call Entry – Parts window.

Use workflow to manage service call escalation steps

You can now create a standard workflow to manage the approval process for service call escalation steps. A new workflow type, Escalation Override, applies to service call documents in the Service Call Entry/Update window. You can activate the workflow by using the Service Type – Escalation window.

Hope you enjoyed this 2-part series and have had a chance to explore some of the new Service Call Management enhancements. Huge, huge are the integrations to payroll and the ability to post payables vouchers for subcontractors. This certainly reduce the amount of steps users have to engage in when closing a service call. I won’t be surprised you will see more integration with Manufacturing in a future revision of this module.

Until next post!

MG.-
Mariano Gomez, MVP
Maximum Global Business, LLC
http://www.maximumglobalbusiness.com/

2010 US Payroll Tax Updates Round 1 now available

Microsoft has released the 2,010 Payroll Tax Updates – Round 1, available for download un CustomerSource and PartnerSource and has communicated that Round 2 will be out the week of January 18th to include changes to Rhode Island and EIC. As many of you have been sending comments and emails about Payroll Tax Updates and Year-End procedures, here is a compiled list of resources for both US and Canada.

Featured on this site

Payroll Year-End Close and W-2 Forms Supportability
US Payroll Tax Update Rounds*
2009 Payroll Tax Update for Microsoft Dynamics GP 8.0

* The following is the complete list of Payroll Tax Update rounds for 2009.

External resources
Version 9
CustomerSource/PartnerSource 2010 U.S. Payroll Tax Update for Microsoft Dynamics GP 9.0 (Round 1)
CustomerSource/PartnerSource 2009 U.S. Payroll Year End Update for Microsoft Dynamics GP 9.0
CustomerSource/PartnerSource 2009 Canadian Payroll Year End Update for Microsoft Dynamics GP 9.0

Version 10
CustomerSource/PartnerSource 2010 U.S. Payroll Tax Update for Microsoft Dynamics GP 10.0 (Round 1)
CustomerSource/PartnerSource 2009 U.S. Payroll Year End Update for Microsoft Dynamics GP 10.0
CustomerSource/PartnerSource 2009 Canadian Payroll Year End Update for Microsoft Dynamics GP 10.0

KB Articles US Payroll

KB Article 850663 – Year-end closing procedures for Microsoft Dynamics GP Payroll
KB Article 856808 – How to process a test “payroll year-end” close by using live payroll data in Microsoft Dynamics GP
KB Article 954154 – Information about the tax fields and year-end update fields in Payroll in Microsoft Dynamics GP

KB Articles Canadian Payroll

KB Article 861806 – Year-end closing procedures for the Canadian Payroll module in Microsoft Dynamics GP

Please comment back with your own tips or issues found during the closing process. Finally, backup, backup, and backup at each step of the way.

Until next post!

MG.-
Mariano Gomez, MIS, MCP, MVP
Maximum Global Business, LLC
http://www.maximumglobalbusiness.com/

Payroll Year-End Close and W-2 Forms Supportability

Yep, it’s that time of the year again! And no, I am not referring to Christmas, Hannukah, Kwanzaa, or 1st of Muharram, though I respect all these celebrations. I am referring to the not-so-celebrated Payroll year-end close and submissions of W-2s — at least here in the United States.

So here are a few things to keep in mind for a successful Payroll year-end close and printing of W-2 forms:

1. Apply the 2009 US Payroll Year-End Update

Just don’t do it by yourself! If you use Microsoft Dynamics GP v10.0 Extender, do not install the 2009 U.S Payroll Year End Update. If you use U.S. Payroll in addition to Extender and need the country code changes or the 1099-R Distribution code changes, please contact Microsoft Technical Support to assist you in installing the update. This should be a free support case.

If you use Web Services for Microsoft Dynamics GP v10.0, the latest hotfix for Web Services must be installed prior to installing the 2009 U.S Payroll Year End Update above. Click HERE to download the latest hotfix for Web Services.

If you use Olympic Project Cost with Microsoft Dynamics GP v10.0, click HERE to download version PC1002.07. This release must be installed prior to installing 10.0 SP 4 or any later patch release including the Year End Update.

Finally, please review all installation instructions carefully and backup all your databases, reports and forms dictionaries BEFORE applying any of these patches.

Payroll Year-End Update Links:

Microsoft Dynamics GP 10.0 – 2009 U.S. Payroll Year End Update MicrosoftDynamicsGP-KB975174-v10-ENU.msp (Includes Service Pack 4)

Microsoft Dynamics GP 9.0 – 2009 US Payroll Year-end MicrosoftDynamicsGP-KB975177-v9-ENU.msp (Includes Service Pack 4)

2. Note on W-2 Forms

For W-2 forms supportability Microsoft has only tested Deluxe forms. If you use or purchase any other forms, chances are YOU WILL NOT get support in case something does not fit correctly.

You can visit Deluxe’s page at https://www.microsoftbusinesschecks.com/index.jsp. If you go to the link choose “Search by” and then choose Microsoft Dynamics. Choose GP version 10 (all should be the same) and choose Laser or Continuous and click continue.You can use this page to compare it to other forms as this page will contain forms that are compatible with Dynamics GP. Deluxe even has available 4-up forms compatible with GP, nonetheless, this is one of those where you would like to check with Microsoft before committing to a particular format

Happy Payroll Year-End Closing!

Until next post!

MG.-
Mariano Gomez, MVP
Maximum Global Business, LLC
http://www.maximumglobalbusiness.com

US Payroll Tax Update Rounds

Having a tough time correlating the Last Tax Update date with the actual Payroll Tax Round number released by Microsoft?

Setup > System > Payroll > Payroll Tax
Sweat it no more! The following is a list of payroll tax round numbers with their corresponding dates:

Round 7 – Last Tax Update 7/3/2009
Round 6 – Last Tax Update 6/22/2009
Round 5 – Last Tax Update 4/27/2009
Round 4 – Last Tax Update 3/23/2009
Round 3 – Last Tax update 2/26/2009
Round 2 – Last Tax Update 1/21/2009
Round 1 – Last Tax Update 12/19/2008

Remember, you can always use the automated tax update feature in Microsoft Dynamics GP to get the latest tax updates.

1) Go to MSDGP > Maintenance > US Payroll Updates > Check for Tax Updates, and choose the Automatic update mode from the wizard.

2) Enter your company Authorization Number (usually your main phone number) to continue.

Click on the Log in button to continue. Dynamics GP will then download the latest tax update and apply the latest fixes required to fix bugs found in processing of payroll taxes.

Until next post!

MG.-
Mariano Gomez, MVP
Maximum Global Business, LLC
http://www.maximumglobalbusiness.com

Round 1 – 2009 Payroll Tax Updates now available

Microsoft has made Round 1 of the 2009 Payroll Tax Updates now available. Round 1 updates a number of state and federal tax tables, per the document:

– California
– Maine
– Michigan
– Minnesota
– New Mexico
– Oklahoma
– Fica/Social Security Wage Limit
– Personal Exemption amounts
– Earned Income Credit

In past days, I reported the EIC value being incorrect for 2009 and apparently it has been taken care of in Round 1.

Tax updates can be applied/re-applied by following these simple instructions:

Dynamics GP 10
Go to Microsoft Dynamics GP > Maintenance > U.S. Payroll Updates > Check for Tax Updates

Dynamics GP 9.0
Go to Help > U.S. Payroll Updates > Check for Tax Updates

Until next post!

MG.-
Mariano Gomez, MIS, MVP, MCP, PMP
Maximum Global Business, LLC
http://www.maximumglobalbusiness.com

Incorrect EIC value in 2009 United States Payroll Tax Update

If you have applied 2009 Payroll Tax Update to your Microsoft Dynamics GP system, you will need to correct the Earned Income Credit amount in the UPR41300 tax table from its old value of $1,750 for 2008, to $1,826 for 2009. However, the amounts seem to be correct for the married and single filing statuses in the UPR41302 tax table.

To fix this issue, run the following script against your DYNAMICS database:

-- Run againt your Dynamics database
USE DYNAMICS
GO
UPDATE UPR41300 SET MXEICPMT = 1826.00 WHERE TAXCODE = 'EIC'

Thanks to Bob Harrison at The Lighthouse Neurological Rehabilitation Center (http://lighthouserehab.com/) for this pointer.

Related Articles

2009 Payroll Tax Update for Microsoft Dynamics GP 8.0 – Click here
2008 Year End Update and Microsoft Dynamics GP 8.0 – Click here

Until next post!

MG.-
Mariano Gomez, MVP
Maximum Global Business, LLC
http://www.maximumglobalbusiness.com/

2009 Payroll Tax Update for Microsoft Dynamics GP 8.0

Dynamics GP consultants outta be some of the most dedicated professionals on the face of the planet. In the past days, many GP 8.0 users have been wondering how to get 2009 tax updates applied to their systems. What was more discouraging is the fact that Microsoft had released a not-too-promising memo about the availability of the 2008 year end and 2009 tax updates.

Nonetheless, my friend Doug Pitcher over at Rose Business Solutions, now has an answer for everyone of you still on GP 8.0. He had been playing around with the 2009 tax update SQL Scripts for 10 and noticed they could work on GP 8.0, so just stop by and download the scripts from his site. Great job Doug!

Until next post!

MG.-
Mariano Gomez, MVP, MCP
Maximum Global Business, LLC
http://www.maximumglobalbusiness.com/