How to set up Microsoft Dynamics GP Payroll deductions for union dues calculations

By - September 6, 2013

The formulas used to calculate union dues are often complicated, non standard deductions that require special treatment in Microsoft Dynamics GP Payroll. Consider the following union dues calculator currently available on the website of a major union.

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  Creating payroll deductions in Dynamics GP to calculate and collect the dues described above is problematic because:

  1. The calculation requires a compound formula, and
  2. The dues cap (maximum) is a variable.

Compound formula

The dues calculation formula above has more than one component and each component is based on different criteria. The first component (calculation 1) is based on a percentage of gross earnings and the second component (calculation 3) is based on a multiple of actual hours worked. A Dynamics GP deduction can handle one of these components at a time. Two deduction codes can be used to calculate and withhold each component but total dues would not be reported; individual component dues amounts would be reported. 

Dues Cap

The deduction maximum required in the example above varies based on the actual hours worked. Dynamics GP deduction allow you to specify a fixed amount (as opposed to a variable amount) as the maximum deduction.


So how can you handle nonstandard union dues calculation in Dynamics GP? 

Negotiate simpler, single component formulas for the union dues calculations that are based on standard business deduction criteria (i.e. percentage of gross pay, percentage of net pay, percentage of defined earnings, fixed amount, or amount per unit/hours worked).

  1. Calculate union dues in and external system (the time and attendance system, Microsoft Excel or SmartList Builder) and import the results into a transaction required deduction.
  2. Write custom code to handle the union dues calculations.

Your RSM LLP business advisor can help you navigate these options and implement the Dynamics GP payroll solution that is right for you. Contact our professionals at or call  855.437.7202.

By: Dave Funk – Pennsylvania Microsoft Dynamics GP partner

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