It’s that time of year again when we need to start planning for year-end. Below is a tentative timeline that includes target dates for the release of the Year-End Update and Round 1 of the tax update for U.S. and Canadian payroll.
- U.S. Payroll 2012 Year-End Update target release date Nov. 16, 2012
- Canadian Payroll Year-End Update target release date mid-December 2012
- U.S. Payroll 2012 Tax Round 1 target release date end of December 2012
- U.S. Payroll 2012 Tax Round 2 target release date January 2013
The Year End Update is all inclusive of GP 2010 Service pack 3 and will include the following changes:
- Payables 1099s
- Fixed Assets Luxury Tax
- Payroll EFW2 electronic filing
- Payroll country code changes (South Sudan, Curacao, Timor-Leste)
- Payroll code changes to comply with 2013 tax update (new Medicare taxes on high earners)
- Several bug fixes for Payroll, HR, eConnect, Manufacturing, Field Service, Project Accounting, and advanced HR.
- NO W2 and W3 form changes.
Please visit the Tax Updates page on CustomerSource to download the latest tax updates.
With year-end fast approaching, many customers have questions regarding the Affordable Care Act and requirements for Benefit Reporting on the W2. For customers with more than 250 employees, employers will be required to report the total cost of health care benefits on the W2. The functionality for tracking this information already exists in GP and requires a simple change to your benefit codes. Check out Guidelines for Payroll W-2 Benefit Reporting for more information on this topic.
Starting Jan. 1, 2013, the Medicare Tax will increase for High Income Earners. Employers will be required to withhold and additional .9 percent for high income earners in the pay period when wages reach $200,000. So for wages in excess of $200,000, the Medicare Tax will increase from 1.45 percent to 2.35 percent. These changes will be part of the Round 1 Tax Update release in January 2013.
Please visit New Medicare Taxes on High Earners for 2013 for more information on this topic.
Other Changes for Round 1 Tax Update include:
- FICA Social Security limit increased to $113,700 (formerly $110,000)
- FICA Social Security rate returns to 6.2 percent
- Changes for the State of Kansas
Looking Ahead to Q1 2013
The IRS has indicated there will be changes to the 941 Form for 2013 Q1. It will require a code change and will not be supported for customers on Microsoft Dynamics GP Version 10.0. Customers on version 10.0 who need this form change will be required to upgrade to GP 2010 or GP 2013.