Dynamics SL Users: Important Updates for 2024 and Beyond

If you’re a current Microsoft Dynamics SL user, there are significant changes this year that may impact how you handle Payroll, Accounts Payable, and other essential functions within Dynamics SL. Starting in January 2024, Microsoft transitioned Dynamics SL 2018 from mainstream support to extended support, which will continue until July 11, 2028. Here’s what this means for your business and how you can prepare for a smooth year-end process.

What Does Extended Support Mean for Dynamics SL?

With the shift to Extended Support, Dynamics SL users will experience a change in how updates and assistance are provided:

• Limited Updates: Only security patches are now available at no additional cost. Year-end updates, new features, or non-security changes are no longer provided.
• Paid Support Options: While paid support is still available, new design changes or feature requests are not supported. It’s essential to ensure your system is running the latest Service Pack to receive ongoing assistance.
• Final Non-Security Updates: The last mainstream update for Dynamics SL 2018 was issued in December 2023. Going forward, Dynamics SL users will need to manually manage adjustments for Payroll, Accounts Payable, and any regulatory changes, as year-end updates are no longer included.

Key Payroll and Accounts Payable Updates for 2024

This year, Dynamics SL users will need to address some key payroll and tax changes manually. Here’s what to expect and how to handle it:

1. Payroll Adjustments Required
   • Social Security Wage Base Increase: The Social Security wage base has been raised to $168,600 for 2024 (up from $160,200 in 2023). This adjustment will need to be entered manually within Dynamics SL, as the automated update is no longer available.
   • Electronic Filing for Forms W-2: The IRS now requires employers to file W-2s electronically if issuing 10 or more in a year. While Dynamics SL still supports the older FIRE format, the new IRIS format may require adjustments. We recommend checking your system’s compatibility with the new IRS filing requirements to avoid potential issues.
   • Quarterly Tax Rates: Federal and state tax rates, which Microsoft previously updated quarterly, are now your responsibility to source and enter manually. This is the first year without automated quarterly updates, so ensure your payroll system reflects the latest rates.
2. Accounts Payable Changes Impacting 1099 Forms

Dynamics SL users who generate 1099s should be aware of new IRS reporting requirements this year:

1. • 1099-K Reporting: For clients receiving payments over $600 through platforms like PayPal or Venmo, new IRS requirements mandate reporting. Although Dynamics SL does not support 1099-K, other AP-related changes may require your attention.
   • Threshold for 1099-MISC and 1099-NEC: The reporting threshold has increased from $600 to $1,000 for these forms. If you rely on Dynamics SL for 1099-MISC and NEC reporting, you may need to adjust reports to accommodate this change.
   • Direct Sales Threshold: The reporting threshold for direct sales has decreased from $5,000 to $1,000, which may require adjustments to reporting templates in Dynamics SL.

How Velosio Can Support You

Navigating these updates and ensuring compliance can be challenging. As your partner, Velosio is here to help you manage these adjustments. Here’s how we can support you:

• Guidance on Manual Adjustments: We can help walk you through entering these changes manually, including adjustments for Social Security wage base, W-2 filing formats, and quarterly tax rates.
• Payroll and AP Consulting: For clients heavily reliant on Dynamics SL payroll and AP functionalities, our team can discuss options to ensure your processes remain efficient and compliant.
• Exploring Alternatives: Given the limitations of extended support, it may be a strategic time to explore transitioning to solutions with ongoing updates, such as Microsoft Dynamics 365 Business Central, which offers enhanced features and continuous support.  *** is there an opportunity to put more of a sales spin on this paragraph?  Velosio can help you analyze your current system utilizing Pathway technology and provide you with insights to help you make an objective decision on your next ERP solution (or something like this?)

Next Steps

1. Review Payroll and AP Needs: Assess your Dynamics SL payroll and AP processes to identify where manual adjustments are required.
2. Stay Informed of Regulatory Changes: Without year-end updates, staying current with tax and regulatory changes will be more critical than ever.
3. Connect with Velosio: We’re here to answer any questions, discuss potential solutions, and help ensure you’re prepared for the year ahead.

At Velosio, we’re committed to supporting your success. If you have questions or need assistance with these Dynamics SL changes, please reach out to our team. We’ll work with you to find the best path forward.

You can reach us at Insider@Velosio.com, email your Client Account Manager, or visit the Client Support Portal for assistance.