State of CT Income Tax Withholding for Microsoft Dynamics GP August 19, 2011 Update

We have received word from Microsoft that they are actively making the changes to their code and hope to have a release within the next week or so. Here are the areas that they are going to change:

1. Additional withholding and YTD amounts of additional withholding
-With the new code, we will take additional withholding all the time, which was not done before. So after we calculate what should be withheld, we will take on additional withholding no matter what above and beyond.
-In the new CT rules, they stated when you calculate the YTD withheld for the employee to NOT include an additional amounts that were taken in prior payrolls.
As you know, we lump this together for YTD withheld, so we do not “know” what was additional amounts for prior payrolls. We are going to “back in” to this number by looking at Cards | Payroll | State Tax and the additional amount and take that amount * how many times you have been paid for the year to determine YTD additional withheld.
Example Terry has additional amount of 200.00, if Terry for whatever reason was paid 3X on 3/31, we will take 3 * 200.00 to get 600.00
So we are assuming this amount was the same all year, this is the only way can comply to this rule.
NOTE: It is important for you to review these amounts and make sure they are correct

If employees are hired after 8/1 , they should have a reduce amount taken as they started later in the year and the YTD step in the calculation should be skipped, again, was not in the released calculation rules, which has now since changed.
-We will look at the hire date and if it is after 8/1 for the employee, then the “special” rules will apply for those employees, noted in the “new calculation rules”

We will contact you after the new code is released and we have tested it in house.

Tags: CT state income tax, CT withholding

This entry was posted on Friday, August 19th, 2011 at 8:15 am and is filed under Microsoft Dynamics GP. 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.