August 26, 2011 CT State Tax Update

Microsoft has released Round 7 Payroll Tax Updates for Microsoft Dynamics GP Payroll.  This latest update will resolve the issues of additional tax withholding and new hires on or after August 1st.  If you are a CriticalEdge Group Dynamics GP Payroll customer, please contact us to schedule your update.

The new code will not resolve issues of employees hired between January and July of 2011. If you have an employee with a 2011 hire date before August 1, 2011 and if the new tax tables are withholding too much money, then take the following steps.

1) Ask the employee to estimate the correct amount of withholding and file a new CT-W4 requesting an estimated withholding amount.

2) Update the employees CT tax status by entering the Estimated Amount.  This will override the CT tax tables completely.

3) At year end, secure a new CT-W4 from the employee. (We recommend that you request W4 forms from all employees at year end.)

Microsoft Update Overview (PDF)

Tags: CT state income tax, GP payroll

This entry was posted on Friday, August 26th, 2011 at 1:15 pm and is filed under Microsoft Dynamics GP, What’s Going On. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.