SIS wants to inform you of important changes affecting Dynamics SL users as Microsoft shifts Dynamics SL to Extended Support. This year, Microsoft will not be offering automatic year-end updates. This will impact Payroll, Accounts Payable, and other key functionalities that may require manual adjustments for compliance in 2024 and beyond.
Mainstream Support for Dynamics SL has been discontinued. Microsoft has now transitioned to Extended Support for Dynamics SL and is no longer providing:
- Non-security updates or new features: Only essential security patches will remain available.
- Year-End Updates: This year, you must make manual adjustments for Payroll, 1099 reporting, and other annual updates as Microsoft will no longer provide these updates automatically.
- While you can still add new users or modules, support is limited. Reviewing the specific changes outlined below is especially important if you rely on Payroll or Accounts Payable.
Key Payroll and Accounts Payable Changes
- Payroll Adjustments
- Social Security Wage Base Increase: For 2024, the wage base increased to $168,600 (up from $160,200). You’ll need to update these figures within Dynamics SL manually.
- Electronic Filing of Forms W-2: IRS regulations now require electronic filing for employers issuing ten (10) or more W-2s. While Dynamics SL supports the older FIRE format, the new IRIS format may require manual adjustments for compliance.
- 1099 Reporting for Accounts Payable
- New Reporting Thresholds: For 1099-MISC and 1099-NEC, the threshold has increased from $600 to $1,000, which may require report adjustments in Dynamics SL.
- Direct Sales: The reporting threshold for direct sales dropped from $5,000 to $1,000, affecting reporting templates.
- Quarterly Tax Rate Updates:
- Microsoft has also discontinued quarterly federal and state tax updates, meaning you must manually source and enter tax rate changes.
Next Steps
To ensure compliance and keep your systems running smoothly, we recommend:
- Reviewing Payroll and AP Needs: Assess where manual updates are required in Payroll and AP processes.
- Staying Informed of Regulatory Changes: Be proactive in sourcing new tax and regulatory updates.
- Contact SIS for help with these adjustments.
- Now is the time to begin planning the outsourcing of your Dynamics SL payroll processing. SIS is here to offer guidance in making this decision.
What You Need to Know
In January 2024, Dynamics SL 2018 transitioned to Extended Support. Only security patches will be provided during this period, and no year-end updates will be available after 2024. However, existing Dynamics SL customers can still purchase new users or modules during the Extended Support phase.
The key features of Extended Support include:
- Paid support options.
- Continued availability of security updates at no additional cost.
- No acceptance of new feature or design change requests.
With the end of Mainstream Support, Dynamics SL 2018 clients should be aware of the following:
- Non-security updates will no longer be available.
- To continue receiving support, it may be necessary to update to the latest Service Pack.
- Microsoft stresses the importance of installing the latest security updates and product releases to ensure optimal security.
