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Processing U.S. Payroll with Microsoft Dynamics AX 2012 R2

In case you’ve been wondering, or exploring, what options are available to help you run U.S. payroll, we are introducing a new payroll solution in Microsoft Dynamics AX 2012 R2. The upcoming MS Dynamics AX 2012 R2 release includes new capabilities to help organizations manage their talent globally. In addition to these global enhancements, this release includes a payroll solution to address U.S. tax regulations and requirements.

In general, organizations only have two options when it comes to payroll: you can outsource it or manage the process in-house. When outsourcing payroll you may save time and resources but your sensitive personal and financial data is not fully under your control. What’s more, this option may or may not deliver the savings relative to the effort it takes to manage the process.

When processing payroll in-house your data is fully under your control. The main consideration is the resources necessary to run the process internally.

Whether you are in the public sector or private industry in the U.S. and you want better control of your payroll data and process, then I invite you to take a look at the new payroll solution available in this release . It is tightly integrated with other areas of Microsoft Dynamics AX 2012 R2 (such as Human Resources, Financials) and enables you to do your payroll in-house. Whenever such highly sensitive information is at stake, processing payroll in-house helps to ensure your employees are paid on a timely, accurate basis while giving you peace of mind.

Microsoft Dynamics AX 2012 R2 provides a comprehensive payroll solution:

  • Enables a one-time setup of benefits, deductions, fringe benefits, workers compensation, and general liability insurance via a seamless integration with Human Resource capabilities in Microsoft Dynamics AX. Easily facilitates printing of pay checks and/or direct deposit pay into employees’ savings and checking accounts through a similar seamless integration to Financial Management capabilities. In addition, this release streamlines your ability to distribute costs to the necessary accounts, and to post payroll.
  • Runs the payment generation process to have the payroll solution do the necessary deductions, contributions, as well as most federal, state, and local tax calculations – gross to net calculation.
  • Enable employees to view their pay statements on a self-service basis in the Enterprise Portal in MS Dynamics AX 2012 R2.
  • Easily records both regular pay (such as salary) and exception-based earnings (such as paid time off).
  • Helps you manage future changes as well as track historical changes by providing a complete picture over time when you date effective data across Payroll. For example, allowing your payroll staff to work ahead and make future-dated changes when possible saves critical time when running the payroll process. The date effective functionality also provides the ability to have mid-pay period compensation rate changes as frequently as necessary.

Because payroll requirements differ significantly by geography, if you are a customer outside of the U.S. that is looking for a payroll solution, please contact your local partner or Microsoft representative.

What are your top priorities when it comes to U.S. Payroll? I think we have developed a compelling Payroll solution to help organizations run their U.S. payroll in-house. Leave a comment, and let’s talk.

 

Dan Schuster

Sr. Product Marketing Manager – Microsoft Dynamics ERP

Comments

  • Anonymous
    November 12, 2012
    Hi Dan Is there any plan to include payroll for other locations such as New Zealand? Regards Wayne Broekhals (looking to use AX for Retail 2012 R2 if when it's released!)

  • Anonymous
    November 16, 2012
    Hi Wayne, We do not have any current plans to build a Payroll solution for New Zealand. The current plan for locations outside of the U.S. is to use 3rd party solutions. Best Regards! Dan

  • Anonymous
    November 28, 2012
    Manuales en espanol cuando estaran disponibles...

  • Anonymous
    November 30, 2012
    Hi sanchema, Training manuals for the U.S. Payroll are scheduled to be completed in the February/March timeframe. These will initially be in English. Currently I am not aware of plans or timelines to translate the manual(s) to Spanish.

  • Anonymous
    December 04, 2012
    The comment has been removed

  • Anonymous
    January 02, 2013
    How does the payroll module work with the data partitioning? We are just beginning to evaluate new ERP software and Dynamics AX is on the list. I just read the blog post about data partitioning and it shounds like a perfect solution to an issue we have where we have a corporate office for AP and payroll, and two plant sites which management wants to treat as seperate entities. We'd love to find a package with in integrated payroll solution which could easily push the plant payroll expenses out to those entities without us having to do manual journal entries every month.

  • Anonymous
    January 08, 2013
    Hi Steve, Unfortunately I don't think this will do what you want.  The partition feature completely segregates ALL data even shared.  So any data that is shared (benefits, earning codes, pay cycles, workers, positions, etc.) will be shared WITHIN a given partition not between partitions. Each partition functions as if it were a completely separate installation, but it truly isn’t as it is a single installation and a common code base.  However tables are defined as either shared or non-shared (not by users, but in development). For what you want I don't think it will work as one partition doesn’t even know that other partitions exist and cannot share or pass GL data between. Sorry I couldn't have a better answer for you. I hope this makes sense. If not let me know. This explanation is NOT payroll/HR specific.  It applies thought out AX.

  • Anonymous
    February 28, 2013
    The comment has been removed

  • Anonymous
    April 04, 2013
    The comment has been removed

  • Anonymous
    March 12, 2014
    Hi Dan, May I please know where to get technical resources that will allow me to learn about how AX 2012 R2 integrates with the tax calculation engine for US? Thanks, Len

  • Anonymous
    April 11, 2014
    Hi Len, I would recommend to start by reaching out to Brandon Potter (Brandon.Potter@microsoft.com) to learn more about the tax engine integration. Thanks, Dan

  • Anonymous
    April 14, 2014
    Hi Dan, I am working on a HR and Payroll project, AX version 2012 R2, and need to know  how to see the employee wise ledger entries in payroll. I am unable to trace it. Your help is highly appreciated. Thanks, Shweta

  • Anonymous
    April 22, 2014
    Please guide me that the US Payroll 2012 R2 implementation is possible for Pakistan region. If yes then please guide me.

  • Anonymous
    May 20, 2014
    Hi Shweta, Are you wanting to view ledger entries from within the Payroll solution or from the Financials solution? And exactly what kind of data are you wanting to view? Thanks!

  • Anonymous
    May 20, 2014
    Hi Ahsan, The U.S. Payroll solution was not designed or localized for Pakistan and is very U.S. centric. That is not to say it will not work in other regions, but it most likely will need to be customized if you want to use it in Pakistan. I would suggest contacting one of our partners, CEM Solutions (http://www.cembs.com/), as they have customized the solution to work outside of the U.S. I hope that helps!

  • Anonymous
    May 21, 2014
    know more about Microsoft Dynamics AX 2012-R3 www.cembs.com/.../know-more-about-microsoft-dynamics-ax-2012r3

  • Anonymous
    May 21, 2014
    www.cembs.com/.../know-more-about-microsoft-dynamics-ax-2012r3