Incorrect subject wages for additional Medicare withholding (FED9) if there's a pre-tax deduction

Symptoms
Consider the following scenario in Payroll in Microsoft Dynamics SL:


Fed9, additional Medicare taxes for earnings over government specified limits, incorrectly calculates.

Resolution
 Fed9 setup: 

1. Open Deduction Maintenance (02.290.00)

2. In Deduction ID, type FED9.

3. Change the Min YTD Subject Base to 200000.00 and change the Max YTD Subject Base to 999999999.

4. On the Exemptions/Credits tab, click on an empty line, Press F4 to switch to form view.

5. If you have a FED6 exemption on FED9 then you will need to delete this exemption.

6. For FED9, set up any pretax exemptions such as medical insurance, the same as you have them for FED6 if you want. But with this hot fix, it now doesn’t matter at all what exemptions you have attached to Fed9 because Fed9 calculations will only use the Fed6 subject wages. Calculations for FED9 will be the same with or without exemptions attached.

NOTE: If the employee is not going to reach the 200000 amount then a good option is to Exempt the employee from Fed9 in Employee Maintenance.

Hotfix information for Microsoft Dynamics SL

A supported hotfix is now available from Microsoft. However, this hotfix is intended to correct only the problem that is described in this article. Apply this hotfix only to systems that are experiencing this specific problem. This hotfix might receive additional testing. Therefore, if you are not severely affected by this problem, we recommend that you wait for the next Microsoft Dynamics SL Service Pack that contains this hotfix as specified in the "Status" section in this article.

To resolve this problem, click the "View and request hotfix downloads" link at the top of this article to obtain the hotfix.

Note If additional issues occur or any troubleshooting is required, you might have to create a separate service request. The usual support costs will apply to additional support questions and issues that do not qualify for this specific hotfix. To create a separate service request, visit the following Microsoft Web site:

File information

The English version of this hotfix has the file attributes (or later file attributes) that are listed in the following table. The dates and times for these files are listed in Coordinated Universal Time (UTC). When you view the file information, it is converted to local time. To find the difference between UTC and local time, use the Time Zone tab in the Date and Time item in Control Panel.


Microsoft Dynamics SL 2015 Cumulative Update 1 (CU1)

Changed FilesDateFile Version
0203000.exe6-Apr-20169.01.40406.00
0250000.exe6-Apr-20169.01.40406.00
0240000.exe6-Apr-20169.01.40406.00
Bug36490PR.sql10-Feb-2016
Microsoft Dynamics SL 2015 and previous versions:
See KB article 2934757

Installation information

Install this hotfix by following the installation instructions that are included in the hotfix download.

Prerequisites

For information about the prerequisites for this hotfix, refer to the installation instructions that are included in the hotfix download.

Restart requirement

If you are prompted, restart the computer after you install the hotfix.

Removal information

You cannot remove this hotfix.
Status
Microsoft has confirmed that this is a problem in the Microsoft products that are listed in the "Applies to" section.

This problem was reported as issue number 36432.
More information
For more information about software update terminology, click the following article number to view the article in the Microsoft Knowledge Base:
824684 Description of the standard terminology that is used to describe Microsoft software updates
Solomon HFSL2015CU1 SL2015CU1HF
Note This is a "FAST PUBLISH" article created directly from within the Microsoft support organization. The information contained herein is provided as-is in response to emerging issues. As a result of the speed in making it available, the materials may include typographical errors and may be revised at any time without notice. See Terms of Use for other considerations.
Properties

Article ID: 3156382 - Last Review: 10/04/2016 19:27:00 - Revision: 3.0

Microsoft Dynamics SL 2015 Cumulative Update 1

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