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McGladrey LLP

7 Tips to Preventing Payroll Errors


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I read an article recently that provided tips to Prevent Payroll Errors.  Many of the tips correspond to features within Microsoft Dynamics GP.  

  1. Keep up to date with Laws and Regulations– In Dynamics GP2010, go to Microsoft Dynamics GP > Maintenance > US Payroll Updates > Check for Tax Updates.  Select either the Automatic or the Manual method.  The process will add the latest tax rate table or notify you that the table is up to date.  Once your tax table is up to date, check Dynamics GP CustomerSource to verify you have the latest tax code update.  Keeping Dynamics GP at the latest Service Pack ensures you have the latest tax code programming as well as fixing other issues the service pack addresses.  To check your version of Dynamics GP, go to Help > About Microsoft Dynamics GP and compare the Version information to the latest information available at CustomerSource.  To check the date of Last Tax Update, Last Tax Code Update and Last Modification  (last manual modification since the last tax update was installed) go to Microsoft Dynamics GP > Tools > Setup > System >  Payroll Tax. 
  2. Make your Form 941 deposits on time – Use the Reminder/Task feature on the homepage to set up task deadlines.  Give yourself enough time to beat the deadlines and get those Form 941 payments in on time.
  3. Classify Employees Correctly – Use the Employee Class field to identify Exempt versus Non-exempt employees.  If you already use the Employee Class for other purposes, use one of the user defined fields to track the employee classification.
  4. Report Fringe Benefits – Set up Benefit codes to track benefits that are can be considered taxable income.
  5. Ensure Social Security Numbers are correct– Use the Social Security Verification Service (SSNVS) (tinyurl.com/29ftfv).  This service matches SSN to employee name.  Up to ten SSNs can be entered manually or use the file upload method to check up to 250,000 SSNs.  Using SmartList you can generate a list of SSNs for the upload method.
  6. Process garnishments correctly – When setting up a garnishment deduction, make sure the Deduction Type is set to Garnishment, and then the Garnishment Category can be selected.  Once set up, you can use the Deduction Sequence window to prioritize the deductions.  Deduction sequences can be adjusted on an employee basis.
  7. Check your numbers– Even with automatic updates, it’s always a good idea to spot check the tax rates.  The IRS Circular E can be downloaded from (tinyurl.com/2lan6).  To compare the tax rates in Dynamics GP, go to Microsoft Dynamics GP > Tools > Setup > System > Payroll Tax.  The federal taxes are listed under the Tax Code FED.  Also check the recent changes in the FICA rates, Tax Code EFICS for the Employer FICA/Social Security and tax Code FICAS for the Employee FICA/Social Security.  They should be 6.2% and 4.2% respectively.

RSM McGladrey consultants are Microsoft Certified Business Management Solution Specialist for Microsoft Dynamics GP Payroll.  Our payroll and human resources systems implementations average from 500 - 2500 employees.  We understand the challenges with payroll implementations and have an implementation methodology with proven results.

RSM McGladrey helped regional staffing company streamlines payroll processand reporting through an implementation of Microsoft Dynamics GP.  With 48 full-time employees, 1480 active paid hires, and seven offices throughout New Jersey, Pennsylvania, and Delaware, this company turned to RSM McGladrey for an integrated Payroll and Human Resource Management Solutions.   

 Claude Frymark, McGladrey - Microsoft Dynamics Specialist for Microsoft Dynamics GP Payroll

by RS McGladrey, a New York City Microsoft Dynamics GP Partner

38 Responses to “7 Tips to Preventing Payroll Errors”

  1. Hooper Grace says:

    Happened to read your article.Found it much informative.Dynamics ERP always stands first for its problem solving ability.Nice blog keep blogging.

  2. I read your article. Found it much informative. It is a good article

  3. Microsoft Dynamics GP Partners and Experts provide advice, costs, comparisons, and and the latest information on ERP sofware.
    ___________
    Kim

  4. Thank you, for giving tips it is very useful to me.
    _______________
    Allen

  5. Work Routine says:

    Dynamics GP > Maintenance > US Payroll Updates > Check for Tax Updates. Select either the Automatic or the Manual method

  6. Work Routine says:

    Dynamics GP CustomerSource to verify you have the latest tax code update…
    …………….

  7. Work Routine says:

    Use the Social Security Verification Service (SSNVS) (tinyurl.com/29ftfv). This service matches SSN to employee name. Up to ten SSNs can be entered manually or use the file upload method to check up to 250,000 SSNs.

  8. Work Routine says:

    Use the Social Security Verification Service (SSNVS) (tinyurl.com/29ftfv). This service matches SSN to employee name. Up to ten SSNs can be entered manually or use the file upload method to check up to 250,000 SSNs.
    ————–
    sarala

  9. Work Routine says:

    Detailed reviews of the leading manufacturing software packages, including functionality specifics, module-by-module benefits; and system strengths and weaknesses

  10. Thanks for giving nice and preventing tips.
    This information is very useful to me, which u have pointed out of tips.
    ————————–
    sweety

  11. Work Routine says:

    These Tips really helped me a lot from preventing Errors………
    —————
    Chinna

  12. Work Routine says:

    Use the Reminder/Task feature on the homepage to set up task deadlines.
    —————————
    shanthi

  13. Work Routine says:

    Use the Reminder/Task feature on the homepage to set up task deadlines.
    ————-
    shanthi

  14. Work Routine says:

    Once your tax table is up to date, check Dynamics GP CustomerSource to verify you have the latest tax code update.
    ——————
    shanthi

  15. Work Routine says:

    Even with automatic updates, it’s always a good idea to spot check the tax rates
    —————–
    shanthi

  16. Work Routine says:

    These tips are really helped preventing errors…………………………
    ————
    Sumanth

  17. Work Routine says:

    o check the date of Last Tax Update, Last Tax Code Update and Last Modification (last manual modification since the last tax update was installed) go to Microsoft Dynamics GP > Tools > Setup > System > Payroll Tax.
    —–
    satti

  18. I read an article recently that provided tips to Prevent Payroll Errors. Many of the tips correspond to features within Microsoft Dynamics …
    ————————
    sweety

  19. Keeping Dynamics GP at the latest Service Pack ensures you have the latest tax code
    —————————–
    sarala

  20. Work Routine says:

    It’s an very good article to prevent somany Criticalized errors were found in payroll….it’s nice to watch and also applicable…
    Thanking U…..for giving such an information……
    —————————
    kiran reddy.

  21. Once your tax table is up to date, check Dynamics GP CustomerSource to verify you have the latest tax code update.
    ___________
    Allen

  22. This service matches SSN to employee name. Up to ten SSNs can be entered manually or use the file upload method to check up to 250,000 SSNs. Using SmartList you can generate a list of SSNs for the upload method.

  23. You know guys, these tasks and error handling are even made easy by different payroll softwares. One does not have to sleep with numbers and calculations in their head. You should try one though. :)

  24. When setting up a garnishment deduction, make sure the Deduction Type is set to Garnishment, and then the Garnishment Category can be selected. Once set up, you can use the Deduction Sequence window to prioritize the deductions. Deduction sequences can be adjusted on an employee basis.
    _______
    Allen

  25. Once your tax table is up to date, check Dynamics GP CustomerSource to verify you have the latest tax code update. Keeping Dynamics GP at the latest Service Pack ensures you have the latest tax code programming as well as fixing other issues the service pack addresses.
    ________________
    Steven

  26. With automatic updates, it’s always a good idea to spot check the tax rates. The IRS Circular E can be downloaded from (tinyurl.com/2lan6). To compare the tax rates in Dynamics GP, go to Microsoft Dynamics GP > Tools > Setup > System > Payroll Tax.
    ________
    Allen

  27. When setting up a garnishment deduction, make sure the Deduction Type is set to Garnishment, and then the Garnishment Category can be selected. Once set up, you can use the Deduction Sequence window to prioritize the deductions. Deduction sequences can be adjusted on an employee basis.
    ______________
    Steven

  28. Once your tax table is up to date, check Dynamics GP CustomerSource to verify you have the latest tax code update. Keeping Dynamics GP at the latest Service Pack ensures you have the latest tax code programming as well as fixing other issues the service pack addresses.
    ______________
    Steven

  29. Use the Employee Class field to identify Exempt versus Non-exempt employees. If you already use the Employee Class for other purposes, use one of the user defined fields to track the employee classification.
    ________________
    Steven

  30. When setting up a garnishment deduction, make sure the Deduction Type is set to Garnishment, and then the Garnishment Category can be selected. Once set up, you can use the Deduction Sequence window to prioritize the deductions. Deduction sequences can be adjusted on an employee basis.
    _____________
    Steven

  31. Even with automatic updates, it’s always a good idea to spot check the tax rates. The IRS Circular E can be downloaded from (tinyurl.com/2lan6). To compare the tax rates in Dynamics GP, go to Microsoft Dynamics GP > Tools > Setup > System > Payroll Tax. The federal taxes are listed under the Tax Code FED.
    ______________
    Steven

  32. ipad 2 says:

    I appreciate your wordpress design, exactly where would you down load it from?

  33. The process will add the latest tax rate table or notify you that the table is up to date. Once your tax table is up to date, check Dynamics GP CustomerSource to verify you have the latest tax code update.
    _______________
    Steven

  34. This service matches SSN to employee name. Up to ten SSNs can be entered manually or use the file upload method to check up to 250,000 SSNs.
    ____________
    Kelvin

  35. When setting up a garnishment deduction, make sure the Deduction Type is set to Garnishment, and then the Garnishment Category can be selected.
    ______________
    Steven

  36. Greg Holbert says:

    These are very good tips, especially making sure your employees are correctly classified. Here is a link to even more tips that can help you prevent payroll errors! http://payrollbuilder.blogspot.com/2012/05/bakers-dozen-of-common-payroll-mistakes.html

  37. DaljeetKaur says:

    I truly like to reading your post on payroll errors. Thank you so much for taking the time to share such a nice information.
    Payroll Services

  38. Hi there! This is my first cmment here so I just wanted to give a quick shou
    out and tell yoou I truly enjoy reading through your
    articles. Can you recommend any other blogs/websites/forums thazt cover the same topics?
    Thanks!

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