Sunday, January 7, 2018

Modified Form 1099 Misc. and the ‘1099s Printed’ report

While preparing our annual 1099s, we had the need to change the name on the 1099 from the Vendor Check Name to an individual’s name. We use the name and social that match the name of the sole proprietor. While the new(ish) field on the Vendor Maintenance window for the address code used on the 1099 is a good start, it doesn’t let you change the Name field that prints on the 1099. Regardless of the Address Code selected, the Vendor Check Name is used by GP to set the name appearing on the 1099.

Oddly, the Vendor Name is used on the ‘1099s Printed’ report instead of the Vendor Check Name.

How the modification works is this. If you need to change the name, use the Address Code of ‘1099’ as the 1099 Address Code. The system will look at the 1099 Address code and if it is ‘1099’ then the Vendor Contact Name is used on the 1099, otherwise the Vendor Check Name is used.

If you would like a copy of these modified reports, you can download the package file from HERE.

Live the dream!


Saturday, December 30, 2017

Making FRx work with unsupported versions of Dynamics

FRX opening screen
I know, I know, we should all be using Management Reporter. News flash! Not everybody wanted to change if I could get FRx to print the reports with their new GP versions. Let’s face it, getting that software installed and getting all of your FRx reports migrated is an expense many people would rather not incur. The secret to getting it up and operational is to find the compatible GPConn.dll you need to make it work. That file, by the way, is located in the following folder: C:\Program Files (x86)\Common Files\microsoft shared\Dexterity\GPConn.dll
The trick is getting the right version of the GPConn.dll. I’ve read that you can run the C:\Program Files (x86)\FRx Software\FRx 6.7\FRxReg67.cmd file and it will create the correct GPConn.dll file. While it does create and register the files, it has not always been the file that has worked for me. It’s certainly worth a try, because it has worked now and again. Another discovery I made the other day is that two workstations running the same operating system needed different GPConn.dll to coax FRx to work.
I’ve collected several different versions of the GPConn.dll file and have posted them to my Box account. If you’re looking for an older version, give one of these files a try. You can access them HERE. Try running the FRxReg67.cmd first, but if that doesn’t work, give these others a try.
The combination that worked on my machine, which is running Windows 10 Pro and GP 2016 R2 build 0641 is this:
  • OS: Windows 10 Pro
  • SQL Driver: SQL Server (not any of the Native Clients)
  • GPConn.dll: version date 04/06/2006 (143 kb)
  • 32-bit ODBC using SQL Native Client 10
Other combinations may very well work and I ask you to please comment and let us know which combinations worked for you.
Live the dream!

Thursday, December 21, 2017

It’s Bonus Time!! How Should we Withhold??

happy_money_PA_300_clr_3212Things are going great this year and your company has decided to pay bonuses to all of the employees. YAY!

So, how much should we withhold on the bonus? How should we set up that bonus pay in Dynamics GP?

The first question you need to answer is whether or not the payments are considered Supplemental Wages for Federal tax withholding purposes. Whether wages are classified as regular wages or Supplemental Wages may have significance in determining the amount of income tax required to be withheld. Most bonuses that I’ve seen are in fact Supplemental Wages.

The answer to the withholding question is as close as Internal Revenue Bulletin 2008-24, which outlines nine different scenarios and explains the withholding requirements for each scenario. The nine different scenarios include:

  1. Commissions paid at fixed intervals with no regular wages paid to the employee;
  2. Commissions paid at fixed intervals in addition to regular wages paid at different intervals;
  3. Draws paid in connection with commissions;
  4. Commissions paid to the employee only when the accumulated commission credit of the employee reaches a specific numerical threshold;
  5. A signing bonus paid prior to the commencement of employment;
  6. Severance pay paid after the termination of employment;
  7. Lump sum payments of accumulated annual leave;
  8. Annual payments of vacation and sick leave; and
  9. Sick pay paid at a different rate than regular pay.

Simply defined in IRS Publication 15, “Supplemental Wages are wage payments to an employee that aren't regular wages. They include, but aren't limited to, bonuses, commissions, overtime pay, payments for accumulated sick leave, severance pay, awards, prizes, back pay, retroactive pay increases, and payments for nondeductible moving expenses. Other payments subject to the supplemental wage rules include taxable fringe benefits and expense allowances paid under a non-accountable plan.”

How you withhold on supplemental wages depends on whether the supplemental payment is identified as a separate payment from regular wages. See Regulations section 31.3402(g)-1 for additional guidance.

If you are running a separate check run or separately identify the ‘non-regular’  wages in your records, they are treated as Supplemental Wages. The most obvious would be  a bonus check. The IRS provides that you should withhold at a flat rate of 25% rather than aggregating the bonus with the regular wages.

If the bonus exceeds $1,000,000, you are required to withhold at a rate of 39.7% on the amount in excess of $1,000,000. These amounts and percentages can change every year, you’ll want to check each year and make the appropriate adjustments to your relevant pay codes. The rules are quite complex regarding withholding on Supplemental Wages.The best explanation I’ve found are the scenarios described in Rev. Rul. 2008-29

If you are running a separate check and do not treat it as supplemental wages, the withheld amount will most likely be incorrect. For example, if you run the bonus with an annual frequency, it’s likely no tax would be withheld on a modest bonus. If you include it with regular pay in a semiweekly pay period, it’s likely that too much will be withheld.

FICA/s and FICA/m withholdings are a fixed amount, so those would be calculated the same no matter what kind of wages you're paying.

If you include the bonus with the regular pay, the withholding percentage could be much higher than 25% because of how pay is aggregated. The bonus pay plus the regular pay are added together and withholding is calculated on the annualized sum of the two.

This article speaks only to Federal tax withholding, you'll need to check your State withholding rules on supplemental wages to see how the state requires you to withhold.

Setting it up in Dynamics GP

For Dynamics GP, here’s how you would set up a Bonus pay type using flat rate withholding.

pay code bonus setup annual fixed %

I have three elements highlighted on the screenshot above.

  1. Pay Type
  2. Pay Period
  3. Flat Tax Rate

I use the Pay Type of ‘Other’ because a bonus doesn’t fit into any of the other categories

I use the Pay Period of annually because this is a bonus given just once per year.  If they get a bonus quarterly, then select a Pay Period of Quarterly.

The Flat Tax Rates section is where you would enter the pre-defined percentage for withholding against the bonus amount. This flat tax does not apply to any other pay codes

What difference does it make?.

This section will show you the amounts withheld for Federal Income Tax under several scenarios.

The following calculations are based on these facts: The bonus is $1,000 and it is a year-end bonus. . I used Fabrikam’s Pillar Ackerman for my test subject. She has $122.95 of ‘before tax’ deductions so I applied the tax rates to $877.05 ($1,000 – $122.95). This explains why the 25% flat tax on the bonus was less than $250.

1. Bonus Pay Period is Daily/Misc. Bonus is Included with regular pay:

FIT Withheld on bonus = $375.19

2. Bonus Pay Period is Annual. Bonus is included with regular pay:

FIT Withheld on bonus = $35.76

3. Bonus Pay Period is Daily/Misc. Bonus is a separate check run.

FIT Withheld on bonus = $190.57

4. Bonus Pay Period is Annual. Bonus is a separate check run.

FIT Withheld on bonus = $0

5. Bonus Pay Period is Daily/Misc. Flat Tax Rate is 25%. Bonus is a separate check run.

FIT Withheld on bonus = $219.26

6. Bonus Pay Period is Annual. Flat Tax Rate is 25%. Bonus is a separate check run.

FIT Withheld on bonus = $219.26

As you can see, the amount of tax withheld can vary substantially depending on how you have set up the Pay Code for the Bonus.

How do I get the bonus check to equal a set amount?

Many employers like the bonus check to be devoid of withholding amounts. One approach to this is to take the withholding amount from the regular check. This normally causes the employee be , um, dissatisfied. The answer to this conundrum is the gross-up.

Employers would have to pay a larger gross amount so that after the required withholding is deducted, the desired net amount is achieved. Dynamics GP can perform this calculation for you.

To access the Gross Up utility, navigate to:

HR & Payroll | Utilities | Payroll | Gross Up

Gross Up in Payroll

Put the net check amount you want, and then adjust the percentages for tax withholding as appropriate. Click on the Calculate button and the system will provide the Gross Amount in order to arrive at the desired check amount. Pretty neat.

I hope this article will give you some food for thought on how to handle the withholding on bonus checks and other supplemental wages.

Live the dream!


Tuesday, November 7, 2017

Updated Dex.ini Switch Document Uploaded

I've finally updated the Dex.ini switch document on Box. If you want a copy, please download it here:
Thanks to Redbeard for giving me the latest switch!

Tuesday, August 29, 2017

Victoria Does it Again - Unposted Check Report

Our own Victoria Yudin has once again hit a home run with her view revealing unposted checks in Dynamics GP. She has solved the problem of the "... universally hated ..." Check Batch Edit List report. You can read her post, and get her code here:

I'm always afraid links will break, so I have copied her post below. Be sure to check her site for any modifications she may make in the future. The little man pictured at the start of this post is from Victoria's Web site, she always has the best graphics
Live the dream!
Thank you Victoria -

SQL view for unposted checks in Dynamics GP

I have been asked more than a few times for a script that shows uposted checks and their apply detail. This can be helpful to replace the Check Batch Edit List report, which is universally hated by all GP users I have spoken to.

create view view_unposted_check_batch
as  -- ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

-- view_unposted_check_batch

-- Created Aug 29, 2017 by Victoria Yudin, Flexible Solutions

-- For updates see

-- Shows details of unposted checks and how they are applied

-- ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
rtrim(p.BACHNUMB) Batch,

rtrim(p.CHEKBKID) Checkbook,

rtrim(p.PMNTNMBR) [Payment Number],

p.DOCDATE [Check Date],

rtrim(p.CHEKTOTL) [Check Amount],

rtrim(p.VENDORID) [Vendor ID],

rtrim(p.VENDNAME) [Vendor Name],

rtrim(p.ADDRESS1) Address1,

rtrim(v.PYMTRMID) [Payment Terms],

rtrim(a.DOCNUMBR) [Invoice Number],

a.DOCDATE [Invoice Date],

a.DocDueDate [Due Date],

a.AMNTPAID [Amount Paid],

a.DISTKNAM Discount,

rtrim(a.TRXDSCRN) [Invoice Description]

from PM10300 p

left outer join PM10201 a


inner join PM00200 v


where p.BCHSOURC like '%check%'

and AMNTPAID <> 0

and CHEKTOTL <> 0

-- add permissions for DYNGRP
grant select on view_unposted_check_batch to DYNGRP