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Microsoft Dynamics GP Year-End Update 2020: U.S. Payroll

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28 Dec

Microsoft Dynamics GP Year-End Update 2020: U.S. Payroll

by Microsoft
in SMB Blog
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This article was originally published by Microsoft.

 

Well, it is 2020, we all got thru the 2019 new W-4 fiasco, now it is time to look ahead and 2020 will be a breeze right?  This blog will go through the changes for U.S. Payroll to make sure your 2020 year end is a huge success!

 

The Year-End Update is always scheduled to be released mid-November. We release this update in November to ensure you have plenty of time to install prior to year-end. In Support, we are often asked if it is OK to install the Year-End Update even though 2020 payrolls are not completely processed. The answer to that is YES YOU CAN! We release the update early so you have plenty of time to install it!

 

This update is all inclusive of prior updates for Microsoft Dynamics GP 2016 and Microsoft Dynamics GP.  This means it will include 18.2 and 18.3 if you are currently not on this version.

 

The 2021 Round 1 Tax Update (tax table update) is targeted to be available mid-December 2020.

 

*Do not install this tax table update until ALL pay runs for the 2020 year are completed.

 

The 2021 Round 2 Tax Update will be available mid-January 2021.

 

Please review all documentation in detail so you are well prepared for the year-end close, specifically around what has changed for this year.

 

Please Note:

 

  • There is no year-end update for Microsoft Dynamics GP 2015.
  • This is the last year-end update for Microsoft Dynamics GP 2016.  Mainstream support for Microsoft Dynamics GP 2016 will end in July 2021.

 

When should the Year End Close process (not install) be done?

 

The Payroll Year End Close process should be done after all pay runs have been completed in the current year.
Due to the changes in 2020, the year end update should be installed and any COVID pay codes updated for Box 14 prior to closing the 2020 year for W2’s to be correctly labeled.

 

Are there any changes I should know about related to the Year End Update for Payroll?

 

There are NO W-2, W-3 or W-4 form changes! YEAH!

 

There are NO EFW2 electronic changes.

 

There are larger Affordable Care Act form and instruction changes (ACA)!!

 

Important to Note This Year:

 

Once you install the 2020 year-end update you can now enter labels for Box 14 on all pay code pay types to report COVID/FFCRA (Families First Coronavirus Response Act) pay.

 

Prior to this update only the Business Expense Pay code Pay type allowed you to key in a W-2 label.

 

Employers are expected to separately report Qualified Sick Leave Wages and Qualified Family Leave Wages paid under the Families First Coronavirus Response Act[(FFCRA) on 2020 Forms W-2, Box 14, or on a separate statement.

 

In the screen shot below COVID is an example label, but should not be used as your label.  This is available for ALL pay types not just Salary.

 

Once you install the update, go to the Setup of your COVID pay codes and properly put the Box 14 label on each code.  When prompted to roll down to all employees choose YES.

 

 

When you create the year end wage file it will report correctly on the W-2.  If you do not install the year end update, you could edit each employees W-2 manually to enter this amount in Box 14.

 

Example of printed W-2

 

 

What does the Year End Close process do?

 

Creates the Year End Wage file with annual wage information used to generate W2s, W3s, 1099’s, EFW2’s (aka Magnetic Media), 1095-Cs, and 1094-Cs for the year being closed.

 

What steps should I take to close the year? (See KB Article 850663 for detailed instructions on each step listed below):

 

**First and foremost, make a restorable backup of the company database so you can restore should you run into a problem.

 

  1. Complete all pay runs for the current year.
  2. Complete all month-end, period-end, or quarter-end procedures for the current year.
  3. Make a backup of the original file.
  4. Install the Year-End Update if it has not already been installed (we release early to give you plenty of time so install early if you can!!).
  5. Create the Year-End Wage file.
  6. Make a backup of the new file.
  7. Verify W-2 and 1099-R statement information.
  8. (Optional) Print the W-2 statements and the W-3 Transmittal form.
  9. (Optional) Print the 1099-R forms and the 1096 Transmittal form.
  10. (Optional) Create the W-2 Electronic file.
  11. (Optional) Archive inactive employee Human Resources information.
  12. Set up fiscal periods for 2021 (if they haven’t been set up yet).
  13. (Optional) Close fiscal periods for the payroll series for 2020.
  14. Install the payroll tax update (2021Round 1 Tax Update) for 2021.

 

Resources:

 

 

Here are the 2020 Year-End Update pages which will provide you with documentation and installation instructions you’ll need for a successful year-end:

 

2020 U.S. Payroll Year-End Update Download Pages:

 

Microsoft Dynamics GP  

 

Microsoft Dynamics GP 2016 

 

Here are the pages on which you can access the latest (and previous) Tax Updates:

 

Microsoft Dynamics GP

 

Microsoft Dynamics GP 2016

 

Year-End Close Resources:

 

Be sure to refer to the 2020 Year-End Blog Schedule to review current and upcoming blog posts and other helpful resource links related to Year-End Closing for Dynamics GP.

 

I hope this is helpful and that you have a successful Year-End!!  If you have any feedback or suggestions, please let us know.

 

Have a wonderful Year-End!!!

 

Thanks

 

Terry Heley

 

Microsoft

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Steve’s been with SMB Suite since 1998 and has been involved with nearly every aspects of the Company’s business as a strategist, professional services executive, cloud solutions architect, and senior consultant. In his current role, Steve is responsible for SMB Suite’s revenue and oversees the execution of ERP, CRM and BI projects for customers across a broad range of industries. Steve combines his expertise in MS Dynamics GP, CRM and other Microsoft products with a strong foundation in accounting and business to identify gaps and streamline customers’ processes. Prior to co-founding SMB Suite, Steve was previously Corporate Controller for MEHLE Behr and, prior to that, Audit Senior for Ernst & Young. Steve holds a Bachelor of Business Administration degree from the University of Texas at Arlington.

Jeremy is responsible for SMB Suite’s technology vision, strategy and implementation and is the architect of the Company’s Dynamics Cloud Platform. Highly adept in every facet of managed services, ERP systems and e-commerce platforms, Jeremy’s expertise spans the implementation and support of business and financial software solutions, as well as the customization and integration of SMB Suite’s cloud ERP technology stack. He holds numerous Microsoft and industry-related certifications, and was primarily responsible for designing the Company’s progressive business services platform in the early days of the Cloud. Prior to SMB Suite, Jeremy served as the financial analyst, systems administrator, and information systems liaison for a $2 billion financial services corporation.

Monty is responsible for SMB Suite’s day-to-day operation and, most importantly, its customers. As a leader, motivator and mentor, Monty creates loyal high performance teams willing to “walk through walls” to accomplish their goals. Prior to SMB Suite, Monty served as President of The Bradshaw Group (TBG), a global distributor, manufacturer, and repair facility for digital printers. In this role, he was the Company’s ambassador to its most important domestic, European and Latin American customers and TBG achieved a best-in-class Net Promoter Score of 74 for its superb customer satisfaction. Prior to TBG, Monty served as the General Manager of Sam’s Clubs three highest grossing U.S. stores and was named Regional Operator of the Year in 1999. Monty holds a BBA in Marketing from Texas Tech University and is an active member of Business Navigators. He has been active in Vistage International, Executives in Action, the Dallas/Fort Worth Retail Executives Association, as well as, A.P.I.C.S., the leading professional association for supply chain and operations management. Monty also volunteers with Hunger Busters and ManeGait, a therapeutic horsemanship organization.

David is a proven financial and information technology professional with expertise in providing business accounting software and computing solutions. He began his career by starting and managing a successful independent consulting practice for several years. He then launched the local systems consulting unit of Ernst & Young’s Entrepreneurial Services Group, leading the office into the hi-tech consulting arena. After successfully developing the unit for Ernst & Young, David founded NextCorp (which became SMB Suite in 2013) to serve the business software needs of clients throughout the US. David has made SMB Suite one of the best cloud ERP providers in the industry. In addition to being a successful entrepreneur and leader, he is a software and technology specialist, holding certifications in various Microsoft and other technologies.