Recapture Provision? What Recapture Provision?

We have had a few clients ask about the recapture provision of the payroll tax cut extension.  Essentially, the recapture provision says that if an employee makes more than a set amount in the first two months of this year, the excess has to be taxed at 6.2%.  What?  How does that work?

Well, fortunately Terry Heley at Microsoft wrote a fabulous blog post explaining this provision and why GP doesn't do it...

http://blogs.msdn.com/b/dynamicsgp/archive/2012/01/05/payroll-tax-cut-temporarily-extended-into-2012-translated-so-a-user-can-understand-and-how-it-affects-microsoft-dynamics-gp.aspx

Check it out!

Christina Phillips is a Microsoft Certified Trainer and Dynamics GP Certified Professional. She is a supervising consultant with BKD Technologies, providing training, support, and project management services to new and existing Microsoft Dynamics customers. This blog represents her views only, not those of her employer.