Tax Update Soon Available for Microsoft Dynamics GP
A mid-year tax update will soon be available for the Microsoft Dynamics GP Canadian payroll module, reflecting provincial changes effective in British Columbia and the Yukon. Moreover, this update will also provide some hotfixes, namely to correct an error calculation to the Quebec Parental Insurance Plan (QPIP) rate.
The error affecting the QPIP results in maximum amounts corresponding to those of 2019 instead of 2020, which means that the employee and employer contributions may be slightly higher than necessary. Although the difference should not represent a substantial amount, we still recommend contacting us to evaluate the actual impact on your organization, depending on the number of employees and their revenue.
As for the tax update, the following changes apply only to companies using the GP Canadian payroll module and that have employees in British Columbia or the Yukon:
- British Columbia: For 2020 and subsequent years, a new top marginal rate of 20.5% is introduced for British Columbia tax filers with incomes over $220,000. Since employees have been taxed at different rates for the first six months of the year, a prorated tax rate will apply for the remaining six months. The prorated rate for July 1, 2020 to December 31, 2020 will be 24.2% for incomes greater than $220,000.
- Yukon: The Yukon Basic Personal Amount (BPAYT) has been changed to mirror the Federal Basic Personal Amount (BPAF). To adjust for the first six months, a prorated calculation will apply for the remaining six months, commencing with the first payroll in July.
As previously announced, support for Microsoft Dynamics GP 2015 ended earlier this year. If you are still using Dynamics GP 2015, you will not be able to install the tax update. If this is the case, please plan your migration to Dynamics GP 2018 R2 as soon as possible in order to benefit from the latest updates and features.
Our clients will be contacted directly when more information is available. For more information regarding the update and hotfixes, please refer to the Microsoft blog. To schedule this update or if you have any questions, please do not hesitate to contact us at firstname.lastname@example.org.