Configuring Microsoft Dynamics GP to Adjust for FUTA Rates

Effective July 1, 2011 the Future Unemployment Tax Act (FUTA) rate decreased from 6.2% to 6.0%. Because this tax is an employer expense, it does not affect an employee's pay check, according to a blog post by Gina Hoener of Summit Group Software. Unlike earlier last minute tax code changes in the US, Microsoft won't be making a code change because this unemployment rate is easily changed in Microsoft Dynamics GP.  

Although the change is inconvenient, Hoener says "it's not the end of the world". The change will be effective from that point on and your payroll reports will reflect the change.

This is not the first time this year that changes to government regulations required last-minute changes for Dynamics GP users.  Earlier this year, Gloria Braunschweig wrote about the last-minute 2011 payroll tax changes that were wreaking havoc with Microsoft Dynamics GP's 2010 payroll module closing and reports. In her first article, she said it was absolutely vital to get the correct payroll code and tax table changes installed in the correct sequence. She also noted the problems and what you should do if you have these problems, and the correct sequence in plain English.

In her second article, Braunschweig offered more tips to help you understand these last-minute changes.  In the end, the changes were simple to fix. "But what a mess if you don't get it."